Question
Dubois Inc. wishes to accumulate $1,361,000by December 31, 2024, to retire bonds outstanding. The company deposits $238,800on December 31, 2014, which will earn interest at10%
Dubois Inc. wishes to accumulate $1,361,000by December 31, 2024, to retire bonds outstanding. The company deposits $238,800on December 31, 2014, which will earn interest at10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for10years to ensure that $1,361,000is available at the end of 2024. (The quarterly deposits will also earn at a rate of10%, compounded quarterly.)(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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