Monroe County is going to issue $65,000,000 in bonds to finance a new water purification plant. The bonds will pay a coupon of 5% semi-annually with a par value of $1000. They have a maturity of 10 years after issue. To reduce the required rate that was offered by investors, Monroe County has agreed to establish a sinking fund. The fund is expected to have a value equal to the total amount borrowed from investors when the bond matures. Please solve for the following;

a) If equal contributions are made to the sinking fund, how much will Monroe County need to deposit into the escrow account each year?

b) By year 6 of the bond issue, what will be the cumulative contribution made to the sinking fund? c) Assume that the year 8 contribution was just made. What is the dollar amount of the unfunded balance that must be satisfied in the remaining years?