Safarl The following information aspples to the questions displeyed below] On ty

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Safarl The following information aspples to the questions displeyed below] On ty t 2016, the frst day of its 2017 fiscal year, the City of Nevin issued at par $300,000 of 4 pencent term bonds to construct a new city office building. The bonds mature In five years on July 1, 2021 Interest s peyable semiannusly on January 1 and Juty 1 A sinking fund is to be estabished with equal semiennus made on Ane 30and December 31,with the first on to be made on December 31, 206 cash be tansfemed from the General the sinking fund and the semiennual Pund shortly betore the due dates City officiais assume s ylield on sinking fund Invesments of 4 percent per annum, compounded semiannually Investment earmings are aoded to the investment principel 30.00 points addtions to the sinking fund, the expected semiannual eamings, and the end -of-period balance in the sinking fund for each of the 10 semiannua periods. (Nofe: The future amount of an ondinary annuity of $1 for 10 perliods at 2 percent per period is 0 949721.) (Do not round intermediato calculations Round your answers to the nearest dollar amount) al Year Period Required Addition Expected Earnings Ending Balance 4,796 2,194 109.582 136.990 4,388 91,788 219 184 MacBook Air 2 3 4 6 W-TE tab

Explanation / Answer

Part a) Fiscal Year Period Required Additions Expected Earnings Ending Balance 2017 1 $                    27,398 $                           - $             27,398 2 $                    27,398 $                  27,398 $             54,796 2018 3 $                    54,796 $                  27,398 $             82,194 4 $                    82,194 $                  27,398 $          109,592 2019 5 $                  109,592 $                  27,398 $          136,990 6 $                  136,990 $                  27,398 $          164,388 2020 7 $                  164,388 $                  27,398 $          191,786 8 $                  191,786 $                  27,398 $          219,184 2021 9 $                  219,184 $                  27,398 $          246,582 10 $                  246,582 $                  27,398 $          273,980

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