Water municipality must deposit money into a sinking fund

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Reference no: EM13727143

To pay off $50,000,000 worth of new construction bonds when they come due in 18 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 9% compounded quarterly, how much will each deposit be?

Reference no: EM13727143

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