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A city sold $6,000,000 worth of bonds to finish paying for a new jail. To pay off the bonds when they mature in 13
A city sold $6,000,000 worth of bonds to finish paying for a new jail. To pay off the bonds when they mature in 13 years, the city sets up a sinking fund. Find the amount of each payment into the fund if the city makes annual payments and the money earns 10% compounded annually. Find the amount of interest earned by the deposits. Click here to view page 1 of the sinking fund table. Click here to view page 2 of the sinking fund table.
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