Purchase Solution

Sinking fund

Not what you're looking for?

Ask Custom Question

9.) A school board issues bonds in the amount of $15,000,000 to be retired in 20 years. How much must be paid into a sinking fund each year at 4% compounded annually to pay off the total amount due?

Attachments
Purchase this Solution

Solution Summary

This provides an example of determining the amount needed to pay into a sinking fund.

Solution Preview

Suppose x dollars must be paid each year. Then the balance at the end of each year is shown below.
Year Balance
...

Purchase this Solution


Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Basics of corporate finance

These questions will test you on your knowledge of finance.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.