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    Value of a sinking fund

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    $2000 is deposited into a sinking fund at the end of each year for 5 years. The fund earns interest at 10% per year, compounded annually.

    What is the principal of the fund right after the fifth deposit has been made?

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    Solution Preview

    The amount in the fund would be the future value of the $2,000 ...

    Solution Summary

    The solution explains how to calculate the value of a sinking fund.