A firm must pay off $40,000 worth of bonds in 7 years. (a) Find the amount of
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A firm must pay off $40,000 worth of bonds in 7 years.
(a) Find the amount of each annual payment to be made into a sinking fund, if the money earns 6% compounded annually.
(b) What annual payment should be made if the firm can get interest of 8% compounded annually?
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a The firms payments will form an ordinary annuity with final amount 40000 R ...View the full answer
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