Repeat Problem 25, with the change that the sinking fund payments are to be made at the end of every month.
Problem 25
To provide for the automation of a production process in five years, Dominion Chemicals is starting a sinking fund to accumulate $600,000 by the end of the five years. Round the sinking fund payments and the periodic interest earnings to the nearest dollar.
a. If the sinking fund earns 7.5% compounded monthly, what monthly payments starting today should be made to the fund?
b. How much interest will be earned in the fourth year?
c. In what month will the fund pass the halfway point? d. How much interest will be earned in the thirty-fifth month?