Langford Insurance Agency borrowed $50000 at 13% simple interest from First Bank to purchase some office furniture. First Bank requires monthly interest payments and the full $50000 at the end of 5 years. In order to meet this obligation, Langford Insurance Agency plans to make monthly deposits to a sinking fund earning 8.5% 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 31 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. $