Blossom Corporation having recently issued a $31.0 million, 10-year bond issue, is required to make...
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Blossom Corporation having recently issued a $31.0 million, 10-year bond issue, is required to make annual year end sinking fund deposits of $2,232,000. The deposits are made on the last day of each year and yield a return of 6%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Click here to view factor tables 1. Compute the fund balance at the end of the 10 years.
Fund balance
$
2. Compute the additional annual deposit amount that should have been made at the end of each of the 10 years to accumulate the $31.0 million.
Additional annual deposit
$
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