Question
A city borrows $500,000 and agrees to pay interest semi-annually at i=10%. a). What semi-annual deposits must be made into sinking fund earning interest at
A city borrows $500,000 and agrees to pay interest semi-annually at i=10%.
a). What semi-annual deposits must be made into sinking fund earning interest at r=6% in order to repay the debt in 15 years?
b). What is the total semi-annual expense of the debt?
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
