please solve all parts within 30 minutes... Computing Annuity Amounts to a Debt RetirementFundOn January 1, Chang Inc. establishes a bond sinkingfund (a bond retirement fund) amounting to$100,000. A trustee has agreed to handle the fundand to increase it each year on a 10% annualcompound interest basis. Chang is to make equalannual contributions to the fund during the next fouryears, starting this year.In answering the following questions, round youranswer to the nearest whole number.Do not use negative signs with your answers.a. Compute the required annual deposits assumingpayments begin on December 31 of this year.$ Answerb. Compute the required annual deposits assumingpayments begin on January 1 of this year.$ Answer

Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…

▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond retirement fund) amounting 00,000. A trustee has agreed to handle t d to increase it each year on a 10% anni

▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond retirement fund) amounting 00,000. A trustee has agreed to handle t d to increase it each year on a 10% anni

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 12E

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Question

please solve all parts within 30 minutes...

Computing Annuity Amounts to a Debt Retirement
Fund
On January 1, Chang Inc. establishes a bond sinking
fund (a bond retirement fund) amounting to
$100,000. A trustee has agreed to handle the fund
and to increase it each year on a 10% annual
compound interest basis. Chang is to make equal
annual contributions to the fund during the next four
years, starting this year.
In answering the following questions, round your
answer to the nearest whole number.
Do not use negative signs with your answers.
a. Compute the required annual deposits assuming
payments begin on December 31 of this year.
$ Answer
b. Compute the required annual deposits assuming
payments begin on January 1 of this year.
$ Answer

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