1/30/2014Assignment Print Viewhttp://ezto.mhecloud.mcgraw-hill.com/hm_accounting.tpx?todo=printview17/2115.aw ard:0.15 out of1.00 point16.aw ard:0 out of1.00 pointTilman Company is required by a bond indenture to make equal annual payments to a bond sinking fund atthe end of each of the next 20 years. The sinking fund will earn 8 percent interest and must accumulate toa total of $500,000 at the end of the 20-year period. Use Table FA–2 (in Exhibit B-4)a.Calculate the amount of the annual payments. (Round your FV factor to 3 decimal places and finalanswer to the nearest dollar amount. Omit the "$" sign in your response.)Annual payments$ 25,000b.Calculate the total amount of interest that will be earned by the fund over the 20-year period. (Roundyour FV factor to 3 decimal places. Do not round your intermediate calculations and roundyour final answer to the nearest dollar amount. Omit the "$" sign in your response.)Total interest$ 40,000c.
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