A company borrowed $230,000 and set up a sinking fund to retire the debt in six years. It made equal deposits at the beginning of every six months into the fund and the fund was earning 8.85% compounded semi-annually.

a. Calculate the size of the periodic deposits into the fund.

Round up to the next cent

b. Calculate the fund balance at the end of the 4^th payment period.

Round to the nearest cent

c. Calculate the interest earned in the 5^th payment period.

Round to the nearest cent.

d. Calculate the amount by which the sinking fund increased in the 5^th payment period.

Round to the nearest cent.

e. Construct a partial sinking fund schedule to illustrate details of the first two payments.

Payment Period	Payment	Interest Earned	Increase in the Fund	Fund Balance	Book Value
0				$0.00	$230,000.00
1
2