Find the amount of interest earned by the deposits

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Reference no: EM131608067

A city sold $4,000,000 worth of bonds to finish paying for a new jail. To pay off the bonds when the mature in 8 years, the city sets up a sinking fund. Find the amount of each payment into the fund if the city makes annual payments and the money earns 6% compounded annually. Find the amount of interest earned by the deposits.

Reference no: EM131608067

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