The Town of Snow Lake issued bonds worth $460,000 maturing in 15 years and a bond rate of 7.6% to finance

construction of recreational facilities. To ensure that they have the funds to redeem the bonds in 15 years, the

town council decided to make equal deposits into a sinking fund at the end of every six months. Interest earned

by the sinking fund is 6.66% compounded semiannually.

a. Determine the semi-annual interest payments made to the bond holders.

b. Determine the amount of the sinking fund payments.

c. Determine the annual expense of the debt to the Town of Snow Lake.