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The company, having issued the bonds in part (b), is committed to make annual sinking fund deposits of $90,000. The deposits are made on the
The company, having issued the bonds in part (b), is committed to make annual sinking fund deposits of $90,000. The deposits are made on the last day of each year and yield a return on 10 percent. Will the fund at the end of 15 years be sufficient to retire the bonds? If not, what is the amount of the deficiency?
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