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A $30,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.00% compounded semi-annually. The deposits were made
A $30,000 bond loan was cleared in 6 years by setting up a sinking fund that was earning 6.00% compounded semi-annually. The deposits were made to the fund at the end of every 6 months.
a. Calculate the size of the periodic payments deposited.
b. What was the total interest earned by the fund?
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