A Company Is Setting Up a Sinking Fund to Pay

question 48

Short Answer

A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in seven years.The fund will earn 7% interest,and the company intends to put away a series of equal year-end amounts for seven years.What amount must the company deposit annually?

---

Definitions:

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Myelin Sheath

A fatty covering that surrounds axons of some nerve cells, facilitating faster transmission of electrical impulses.

Myelin

A fatty substance that surrounds neurons' axons, helping to speed up the transmission of electrical signals in the nervous system.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.