Future value of annuity-compute the fund balance

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Reference no: EM131258176

Future value of annuity. [Tables needed]

Pearson Corporation having recently issued a $25 million, 10-year bond issues, is required to make annual year-end sinking fund deposits of $ 1,800,000. The deposits are made on the last of each year and yield a return of 5%.

1. Compute the fund balance at the end of 10 years.

2. Compute the additional annual deposit amount that should have been made at the end of each of the 10 years to accumulate the @25 million.

Reference no: EM131258176

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