Ivanhoe Company issued $1,180,000, 14-year bonds. It agreed to make annual deposits of $94,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 14 years. The deposits are made at the end of each year into an account paying 8% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 14 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund $
Ivanhoe Company issued $1,180,000, 14-year bonds. It agreed to make annual deposits of $94,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 14 years. The deposits are made at the end of each year into an account paying 8% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 14 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ivanhoe Company issued $1,180,000, 14-year bonds. It agreed to make annual deposits of $94,000
to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the
end of 14 years. The deposits are made at the end of each year into an account paying 8% annual
interest.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
What amount will be in the sinking fund at the end of 14 years? (Round answer to 2 decimal
places, e.g. 25.75.)
Amount in the sinking fund
$
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