To pay off $61000000 worth of new construction bonds when they come due in 22 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 7.1% compounded quarterly, how much will each deposit be?" A 112994.25 B 199742.92 C 246222.74 D 292361.47 E 128052.71
To pay off $61000000 worth of new construction bonds when they come due in 22 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 7.1% compounded quarterly, how much will each deposit be?" A 112994.25 B 199742.92 C 246222.74 D 292361.47 E 128052.71
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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"To pay off $61000000 worth of new construction bonds when they come due in 22 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 7.1% compounded quarterly, how much will each deposit be?"
A 112994.25
B 199742.92
C 246222.74
D 292361.47
E 128052.71
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