Hein Engineering expects to expand its plant facilities in six years at an estimated cost of $75 000. To provide for the expansion, a sinking fund has been established into which equal payments are made at the end of every three months. Interest is 5% compounded quarterly.
(a) What is the size of the quarterly payments?
(b) How much of the maturity value will be payments?
(c) How much interest will the fund contain?