Question 2

Cullumber Company has decided to begin accumulating a fund for plant expansion. The company deposited $87,000 in a fund on January 2, 2018. Cullumber will also deposit $42,000 annually at the end of each year, starting in 2018 . The fund pays interest at 9 ? compounded annually. Click here to view the factor table. What is the balance of the fund at the end of 2022 (after the 2022 deposit)? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 52.75.) Fund balance $ Oriole Company issued $1,200,000, 9-year bonds. It agreed to make annual deposits of $96,000 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 9% 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 9 years? (Round answer to 2 decimal places, e.g. 25.75.)