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Problem related to sinking funds

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Question: SINKING FUNDS A city has $2.5 million worth of school bonds that are due in 20 yr and has established a sinking fund to retire this debt. If the fund earns interest at the rate of 7%/year compounded annually, what amount must be deposited annually in this fund?

Reference no: EM131556604

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Problem related to sinking funds : SINKING FUNDS A city has $2.5 million worth of school bonds that are due in 20 yr and has established a sinking fund to retire this debt.
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