Brief Exercise A-4
? Your answer is incorrect. Try again.
Bates Company issued $700,000, 9-year bonds. It agreed to make annual deposits of $75,500 to a fund (called a sinking fund), which will be used to pay off
the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 4% annual interest.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What amount will be in the sinking fund at the end of 9 years? (Round answer to 2 decimal places, e.g. 25.25.)
Amount in the sinking fund
2583174.08