Johnston Industries Ltd. plans to replace a warehouse in 10 years at an estimated cost of $450,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. The fund is growing at 8.50% compounded quarterly.

a. What is the size of the quarterly payments?

Round up to the next cent

b. What is the sinking fund balance at the end of 6 years?

Round to the nearest cent