Bonds to pay for improvements

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Reference no: EM13743786

A city near chicago sold $9000000 in bonds to pay for improvements to an airport. It set up a sinking fund with end-of-quarters payments in an account earning 8% compounded quarterly. Find the amount that should be deposited in this fund each quarter if the city wishes to pay off the bond in (a) 7 years (b) 12 years

Reference no: EM13743786

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