A Ltd has to retire 1000 million of debentures each at the end of 8,9 and 10

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A Ltd has to retire 1000 million of debentures each at the end of 8,9 and 10 years from now. How much should the firm deposit in a sinking fund account annually for 5 years, in order to retire the debenture ? The interest rate earned is 8 percent .

Why is Present value of annuity due used instead of ordinary annuity?

What's the wording that indicated the problem should be solved using that type of annuity?

Related Book For answer-question

Personal Finance Turning Money into Wealth

ISBN: 978-0134730363

8th edition

Authors: Arthur J. Keown

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Posted Date: Nov 06, 2023 06:56 AM

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A Ltd has to retire 1000 million of debentures each at the end of 8,9 and 10

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The sinking fund approach is used to accumulate a sum of money over a period to repay a debt when it ... View the full answer

Personal Finance Turning Money into Wealth

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