The George Town Council needs to accumulate $7,000,000 so that they can afford to upgrade a sewerage plant in 3 years time. They have an account at the East Bank that pays interest j₁₂ = 4.12% p.a. The Council hopes to achieve their savings target by depositing the same amount each month for 36 months, starting in a month's time.

1. [2 marks] Illustrate the cashflows associated with this scenario as a fully labelled timeline diagram.
2. [3 marks] Determine the required size of their monthly deposit.
3. [1 mark] Describe and perform a sanity check for your answer to (b)
4. [5 marks] Construct a sinking fund schedule showing the last two deposits. Ensure that you show how you got your starting value, and also that you provide example calculations for one line from the table.
5. [1 mark] Describe and perform a sanity check for your answer to (d)