A company borrowed $280,000 and set up a sinking fund to retire the debt in eight years. It made equal deposits at the beginning of every six months into the fund and the fund was earning 8.35% 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 8th payment period. Round to the nearest cent

c. Calculate the interest earned in the 9th payment period. Round to the nearest cent.

2.

Sepia Inc. issued bonds for $325,000 that were redeemable in 9 years. They established a sinking fund that was earning 3.46% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months.

a. Calculate the size of the periodic sinking fund deposit.

Round your answer up to the next cent

b. Calculate the sinking fund balance at the end of the payment period 12.

Round to the nearest cent

c. Calculate the interest earned in payment period 13.

Round to the nearest cent

d. Calculate the amount by which the sinking fund increased in payment period 13.

Round to the nearest cent