Question: Brief Exercise G-04 * Your answer is incorrect. Try again. Blossom Company issued $1,120,000, 13-year bonds. It agreed to make annual deposits of $90,000 to

 Brief Exercise G-04 * Your answer is incorrect. Try again. Blossom

Brief Exercise G-04 * Your answer is incorrect. Try again. Blossom Company issued $1,120,000, 13-year bonds. It agreed to make annual deposits of $90,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each year into an account paying 6% 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 13 years? (Round answer to 2 decimal places, e.g. 25.75.) Amount in the sinking fund Amount in the sinking fund 11,699,395.00 00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!