A $77,500 loan was cleared in 7 years by setting up a sinking fund that was earning 5.50% compounded semi-annually. The deposits were made into the fund at the end of every 6 months.

a) Calculate the size of the sinking fund deposits.

* was able to solve this question

c/y-2

p/y-2

n-2*7= 14

i/y=5.5%

Pv-0

Fv=77500

pmt-?

pmt=4613.15

b. Calculate the total amount of interest earned by the fund.

* unable to solve