Present Value of 1 Future Value of 1

question 8

Short Answer

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?

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Definitions:

Vicarious Learning

Learning that occurs by observing the actions and outcomes of others’ behavior, rather than through direct experience.

Rewarded

Given something, usually of value or significance, in recognition of service, effort, or achievement.

Punished

The act of administering a negative consequence to reduce the likelihood of a behavior recurring.

Social Learning

The theory that people can learn new behaviors by observing and imitating others.