To redeem a $100 000 promissory note due in 10 years, Cobblestone Enterprises has set up a

Question:

To redeem a $100 000 promissory note due in 10 years, Cobblestone Enterprises has set up a sinking fund earning 7.5% compounded semi-annually. Equal deposits are made at the beginning of every six months.
(a) What is the size of the semi-annual deposits?
(b) How much of the maturity value of the fund is deposits?
(c) How much is interest?

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