At the beginning of 2017, Lisa Co. issued bonds with a face value of $700,000 due on December 31, 2023. The company desires to accumulate a fund to retire these bonds at maturity by making equal annual deposits beginning on December 31, 2017.
Required:
Compute the amount that the company must deposit at the end of each year, assuming that the fund will earn 10%
interest a year compounded annually and seven deposits are made.

Question

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The Answer of At the beginning of 2017, Lisa Co. issued bonds with a face value of $700,000 due on December 31, 2023. The company desires to accumulate a fund to retire these bonds at maturity by making equal annual deposits beginning on December 31, 2017.
Required:
Compute the amount that the company must deposit at the end of each year, assuming that the fund will earn 10%
interest a year compounded annually and seven deposits are made.

At the Beginning of 2017, Lisa Co