1. Ekman Company issued $1,400,000, 13-year bonds and agreed to make annual sinking fund deposits of $70,700. The deposits are made at the end of each year into an account paying 6% annual interest.
What amount will be in the sinking fund at the end of 13 years?
2. Terry and Jessica Benedict invested $6,100 in a savings account paying 5% annual interest when their daughter, Kristi, was born. They also deposited $1,000 on each of her birthdays until she was 17 (including her 17th birthday).
How much was in the savings account on her 17th birthday (after the last deposit)?