On January 1, Chang Inc. establishes a bond sinking fund (a bond retirement fund) amounting to $100,000.
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On January 1, Chang Inc. establishes a bond sinking fund (a bond retirement fund) amounting to $100,000. A trustee has agreed to handle the fund and to increase it each year on a 10% annual compound interest basis. Chang is to make equal annual contributions to the fund during the next four years, starting this year.
- In answering the following questions, round your answer to the nearest whole number.
- Do not use negative signs with your answers.
a. Compute the required annual deposits assuming payments begin on December 31 of this year.
b. Compute the required annual deposits assuming payments begin on January 1 of this year.
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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