Contemporary Financial Management, Loose-leaf Version
Contemporary Financial Management, Loose-leaf Version
14th Edition
ISBN: 9781337090636
Author: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
Publisher: South-Western College Pub
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Chapter 5, Problem 20P
Summary Introduction

To determine: The annual sinking fund payments.

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Stein and Company has established a sinking fund to retire a bond issue of $700,000, which is due in ten years. How much is the quarterly sinking fund payment if the account pays 16% annual interest compounded quarterly? E Click the icon to view the $1.00 sinking fund payments table. The sinking fund payment is S: (Round to the nearest cent as needed.)
A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a sinking fund that pays 3 percent interest (effective) and makes yearly deposits into the fund (end of the year). Interest on the loan is charged yearly (end of the year). 14. What is the yearly deposit (sinking fund deposits and interest?) 15. a101.06&.03
Bramble Corporation, having recently issued a $20,094,900, 15-year bond issue, is committed to make annual sinking fund deposits of $617,600. The deposits are made on the last day of each year and yield a return of 10%.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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