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Teal 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
Teal 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%. 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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