Carla Vista Company issued $1,700,000, 13-year bonds. It agreed to make annual deposits of $79,500 to a fund (called a sinking fund).which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each yearinto an account paying 8% annual interest.Click here to view the factor table.What amount will be in the sinking fund at the end of 13 years? (For calculation purposes, use 5 decimal places as displayed in the factortable provided. Round answer to 2 decimal places, e.g. 25.25.)Amount in the sinking fund$

Amount in the Sinking Fund (Future Value of an Ordinary Annuity)Here, we have the annual deposits…

Answered: Carla Vista Company issued $1,700,000,…

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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