A loan of $300,000 is to be paid back in 15 years at i

(2) = 9% using the sinking fund method. Semiannual deposits are made into a sinking fund earning i

(2) = 6%. Set up a schedule similar to the one

done in section 5.4 of the textbook, but adding 2 more columns: one for the semi-annual expense of

the loan and one for the book value of the loan. Graph the accumulated amount of the sinking fund

and the book value of the loan on the same graph

"The last deposit is adjusted to have the final amount in the fund equal $78000