Purchase Solution

Annuity for Sinking Fund

Not what you're looking for?

Ask Custom Question

Acme has decided to establish a sinking fund for its outstanding preferred stock issue. $975318642 represents the amount of the issue that will be retired in 26 years. At the beginning of each of these 26 years, Acme will deposit an equal amount into an account that earns B% (B = 7) What is the value of this periodic deposit?

Purchase this Solution

Solution Summary

The solution calculates the value of this periodic deposit into a sinking fund for outstanding preferred stock issue.

Solution Preview

FV= $975,318,642
NPER= 26
I= 7%
PV= 0

PMT= $13,272,563 (using EXCEL function PMT) =PMT(C7,C6,C8,-C5,1)
(use annuity due as deposits are at the beginning of the ...

Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.