A Sinking Fund Is Established to Discharge a Debt of $80,000

question 27

Multiple Choice

A sinking fund is established to discharge a debt of $80,000 in 11 years. If deposits are made at the end of each 6-month period and interest is paid at the annual rate of 6%, compounded semiannually, what is the amount of each deposit? Round your answer to the nearest cent. ​

• A)$823.02
• B)$1,252.54
• C)$2,619.79
• D)$612.85
• E)$405.67

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