Langford Insurance Agency borrowed $25000 at 17.5% simple interest from First Bank to purchase some office furniture. First Bank requires monthly interest payments and the full $25000 at the end of 8 years. In order to meet this obligation, Langford Insurance Agency plans to make monthly deposits to a sinking fund earning 7.5% compounded monthly. Round up any part of a cent.

a. State Langford Insurance Agency's total monthly obligation. $ b. State the balance in the sinking fund just after 40 deposits. $ c. Set up a sinking fund schedule on your own paper. Then, state the following:

The amount of interest earned the second month. $

The balance at the beginning of the fourth month. $