ch 10 17 - 15 Assig nment Pr int View aw ar d 0.15 out of...

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1/30/2014 Assignment Print View http://ezto.mhecloud.mcgraw-hill.com/hm_accounting.tpx?todo=printview 17/21 15. aw ard: 0.15 out of 1.00 point 16. aw ard: 0 out of 1.00 point Tilman Company is required by a bond indenture to make equal annual payments to a bond sinking fund at the end of each of the next 20 years. The sinking fund will earn 8 percent interest and must accumulate to a total of $500,000 at the end of the 20-year period. Use Table FA–2 (in Exhibit B-4 ) a. Calculate the amount of the annual payments. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Annual payments $ 25,000 b. Calculate the total amount of interest that will be earned by the fund over the 20-year period. (Round your FV factor to 3 decimal places. Do not round your intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign in your response.) Total interest $ 40,000 c.
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