QUESTION 9

Aleug Corporation is depositing equal sums of money at the beginning of every three months into a sinking fund to redeem a $165 000.00 promissory note due 11 years from now. Interest earned by the fund is 4.6% compounded quarterly. i) Determine the size of the quarterly payments into the sinking fund. ii) Compute the balance in the fund after six years. iii) Compute the increase in the fund during the 25th payment interval.