Question
A city needs to have $2 000 000 at the end of 15 years to retire a bond issue. To raise the amount, a sinking
A city needs to have $2 000 000 at the end of 15 years to retire a bond issue. To raise the amount, a sinking fund has been created.
(a) What annual deposits to the fund will be necessory if the money earns interest at j1= 7%?
(b) How much interest does the fund earn in the 4th year?
(c) What is the increase in the sinking fund in the 9th year?
(d) How much is in the sinking fund at the end of 11 years
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
