The Town of Keewatin issued debentures worth $120 000 maturing in 10 years to finance construction of water and sewer facilities. To redeem the debentures, the town council decided to make equal deposits into a sinking fund at the beginning of every three months. Interest earned by the sinking fund is 6% compounded quarterly.
(a) What is the size of the quarterly payment into the sinking fund?
(b) What is the balance in the fund after six years?
(c) How much interest is earned by the fund in the 28th payment interval?
(d) By how much will the fund increase in the 33rd payment interval?
(e) Prepare a partial sinking fund schedule showing details of the first three payments, the last three payments, and totals.