For Question 4, compute the interest earned during the fifth payment interval. Verify your answer by checking the sinking fund schedule.
In Question 4
A sinking fund amounting to $15 000 is to be created by making payments at the beginning of every six months for four years. Interest earned by the fund is 12.5% compounded semi-annually. Determine the size of the semi-annual payments and prepare a sinking fund schedule showing totals.