Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make annual sinking fund deposits of $613,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity Will funds be sufficient?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 20P
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Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make annual sinking fund deposits of $613,500. The deposits are made on the last day of each
year and yield a return of 10%.
Click here to view factor tables
Will the fund at the end of 15 years be sufficient to retire the bonds?
Future value of an ordinary annuity
Will funds be sufficient?
Transcribed Image Text:Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make annual sinking fund deposits of $613,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity Will funds be sufficient?
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