Calculation of deficiency


Kate Greenway Corporation, having recently issued a $20,113,000, 15-year bond issue, is committed to make annual sinking fund deposits of $610,000. 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?

If not, what will the deficiency be? (Round answers to 0 decimal places, e.g. $458,581.)

 

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Finance Basics: Calculation of deficiency
Reference No:- TGS025196

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