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Oriole Corporation, having recently issued a $20,025,900,15-year bond issue, is committed to make annual sinking fund deposits of $624,000. The deposits are made on the
Oriole Corporation, having recently issued a $20,025,900,15-year bond issue, is committed to make annual sinking fund deposits of $624,000. The deposits are made on the last day of each year and yield a return of10%.
Will the fund at the end of15years be sufficient to retire the bonds?
Future value of an ordinary annuity$______
Will funds be sufficient?______
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