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To Redeem a $10 000

question 18

Essay

To redeem a $10 000.00 promissory note due in 12 years,SEJE has set up a sinking fund earning 8% compounded semi-annually.Equal deposits are made at the beginning of every six months.What is the size of the semi-annual deposits?


Definitions:

Securities and Exchange Commission

The U.S. federal agency responsible for regulating the securities industry and ensuring public companies adhere to disclosure laws.

Proprietorship

A business that is owned and run by one individual, where there is no legal distinction between the owner and the business entity.

Legal Entity

An organization that possesses legal rights and responsibilities, including the ability to enter contracts, sue, and be sued; can be a company, non-profit, or government organization.

Governmental Agency

An organization established by a government to administer specific legislation and carry out public policies.

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