Common Ground Corporation Issued $8,000,000, 10-Year Bonds and Agreed to Make

Multiple Choice

Common Ground Corporation issued $8,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $620,000. The deposits are made at the end of each year into an account paying 6% annual interest. Common Ground has the following values related to the time value of money and compounded interest decisions. $\begin{array}{lr}\text { Present value of } 1 \text { for } 10 \text { periods at } 6 \% & 0.55839 \\\text { Future value of } 1 \text { for } 10 \text { periods at } 6 \% & 1.79085 \\\text { Present value of an annuity of } 1 \text { for } 10 \text { periods at } 6 \% & 7.36009 \\\text { Future value of an annuity of } 1 \text { for } 10 \text { periods at } 6 \% & 13.18079\end{array}$ To the closest dollar, what amount will be in the sinking fund at the end of 10 years?

A) $4,467,120
B) $4,563,256
C) $8,172,090
D) $12,800,000