Question

Determine the approximate size of the annual payment needed to retire $70,000,000 in bonds issued by a city to build a dam. The bonds must be repaid over a 50 year period and they earn an annual rate of 6%, compounded annaully. (Hint: 50 years may be taken as infinite) $350,000 O $%140,000 O$1,400,000 $4,200,000

0 0
Add a comment Improve this question Transcribed image text
Answer #1

$4,200,000 [ 70000000 x6%) annual payment-

Add a comment
Know the answer?
Add Answer to:
Determine the approximate size of the annual payment needed to retire $70,000,000 in bonds issued by...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is...

    CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $378,000, annual operating costs of $22,000, and a 3-year life. Machine B costs $257,000, has annual operating costs of $43,000, and a 2-year...

  • Fleda's Beauty Company has $200,000 of total assets and earns 20 percent interest and taxes on...

    Fleda's Beauty Company has $200,000 of total assets and earns 20 percent interest and taxes on these assets. The ratio of total debts to total assets (or DR been set at 50 percent. The interest rate on short-term debt is 7 percent, while the interest rate on long-term debt is 10 percent. A conservative policy calls for only long-term debt with no short-term debt; an intermediate policy calls for 50 percent short-term debt and 50 percent long-term debt; and an...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT