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. 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