Annual sinking fund deposits


Question: Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Annual sinking fund deposits
Reference No:- TGS01942978

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)