Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000.

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Question
Time value of money

Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years?