Ontario Credit Union borrowed $225 000 at 13% compounded semi-annually from League Central to build an office complex. The loan agreement requires payment of interest at the end of every 6 months. In addition, the credit union is to make equal payments into a sinking fund so that the principal can be retired in total after 15 years. Interest earned by the fund is 11% compounded semi-annually. (Round all answers to the nearest dollar.)
(a) What is the semi-annual interest payment on the debt?
(b) What is the size of the semi-annual deposits into the sinking fund?
(c) What is the total annual cost of the debt?
(d) What is the interest earned by the fund in the 20th payment interval?
(e) What is the book value of the debt after 12 years?
(f) Prepare a partial sinking fund schedule showing details, including the book value of the debt, for the first three years, the last three years, and totals.