$($b$1)$

Blue Corporation, having recently issued a $$20,075,700,15-$year bond issue, is committed to make annual sinking fund deposits

of $$625,000.$ The deposits are made on the last day of each year and yield a return of $10\%.$

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Will the fund at the end of $15$ years be sufficient to retire the bonds?

Future value of an ordinary annuity

$

Will funds be sufficient?

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