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Sinking fund

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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?

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

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

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