Brief Exercise G-4 Carla Vista Co. issued $1,500,000, 15-year bonds and agreed t

Question

Brief Exercise G-4 Carla Vista Co. issued $1,500,000, 15-year bonds and agreed to make annual sinking fund deposits of $79,000. The deposits are made at the end of each year into an account paying 4% annual interest. ble Future Value of 1 Click here to view the factor table Future Value of an Annuity of 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 15 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking funds Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer

Future value of sinking fund = Annual deposit ((1+r)^t - 1) / r

=79000 (1+.04)^15 / 0.04

= 79000*45.0235876377

=3556863.42

Hence Amount in the sinking fund will be 3556863.42

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.