Niva Ltd. replaces it's equipment every seven years with new and updated models. It is estimated that new equipment will cost $325,000. The financial manager is looking into various methods of financing and has asked you to prepare analysis using the following details:

(a) If the $325,000 debt, which is compounded annually at 8.7%, is to be discharged in six years by a sinking fund method, under which equal annual deposits will be made into a fund paying 6.8% annually, produce the schedule for the sinking fund.