Solution-What amount will be in the sinking fund at the end

What amount will be in the sinking fund at the end years

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Reference no: EM132528681

Bates Company issued $1,200,000, 12-year bonds. It agreed to make annual deposits of $81,500 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 12 years. The deposits are made at the end of each year into an account paying 5% annual interest.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Question 1: What amount will be in the sinking fund at the end of 12 years?

Reference no: EM132528681

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What amount will be in the sinking fund at the end years

Reference no: EM132528681

Reference no: EM132528681

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