3.Adebt of $5000 is amortized by making equal payments at the end of every 3 months for 2years. If interest is 8% compounded quarterly, construct an amortization schedule.

5.Ace Machinery wants to provide for replacement of equipment seven years from now, estimated to cost $60 000.00. To do so, the company sets up a sinking fund into which it will pay equal sums of money at the beginning of each of the next seven years. Interest paid by the fund is 4.5% compounded annually.

i.What is the size of the annual payment into the fund?

ii.What is the total paid into the fund by Ace Machinery?

iii.How much of the fund will be interest?