Swifty Corporation, having recently issued a $20,120,000, 15-year bond issue, is committed to make annual sinking fund depositsof $606,200. The deposits are made on the last day of each year and yield a return of 10%.Click here to view factor tablesDetermine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g.458,581.)Deficiency $

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Answered: Determine the amount of deficiency.…

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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Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning immediately. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table/Calculator Function = Payment = n = i = Present Value =

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Determine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581) Deficiency $