Question

Your company has a bond issue that'll be due in 15 years. Based on the terms of the bond, your company needs to start to set aside a fixed amount of money to make sure that the financial obligation in 15 years will be safely met. So your company has decided that starting from today, the company will make an annual deposit of $6.5 millions dollars for 15 years, with the first deposit to be made today (15 deposits in total), in a special financial account that pays a 6.20% annual rate. How much money will your company have in this account at the end of 15 years?

Note: your answer should be in millions of dollars, have two decimal points, and contain only numbers. For example, if your calculation is 2,556.38 million dollars, then input 2556.38 into the answer box.

Answer 1