A company borrowed $220,000 and set up a sinking fund to retire the debt in...
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A company borrowed $220,000 and set up a sinking fund to retire the debt in eight years. It made equal deposits at the beginning of every six months into the fund and the fund was earning 8.25% compounded semi-annually. a. Calculate the size of the periodic deposits into the fund. Round up to the next cent b. Calculate the fund balance at the end of the 8th payment period. Round to the nearest cent C. Calculate the interest earned in the 9th payment period. Round to the nearest cent. d. Calculate the amount by which the sinking fund increased in the 9th payment period. Round to the nearest cent. A company borrowed $220,000 and set up a sinking fund to retire the debt in eight years. It made equal deposits at the beginning of every six months into the fund and the fund was earning 8.25% compounded semi-annually. a. Calculate the size of the periodic deposits into the fund. Round up to the next cent b. Calculate the fund balance at the end of the 8th payment period. Round to the nearest cent C. Calculate the interest earned in the 9th payment period. Round to the nearest cent. d. Calculate the amount by which the sinking fund increased in the 9th payment period. Round to the nearest cent
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