You are opening a savings account which pays fortnightly interest at a rate of j₂₆ = 2.3% p.a. You wish to save $55,000 for a mortgage deposit by depositing the same amount into the account at the end of each month, for 2.5 years, starting in a months time.

1. Determine the required size for the fortnightly deposit, R. Apply a sanity check.
2. Construct a sinking fund table for the last five deposits. (Ensure that you show how you obtained your starting value for the table.) Describe and apply a sanity check to your table.
3. Suppose that immediately after your 25^th deposit, the interest rate rises to j₂₆ = 2.6% p.a. Determine the size of the deposits you must make in fortnight 25 an onwards in order to still make your target of $55,000.
4. With the new interest rate j₂₆ = 2.6% p.a, construct a new sinking fund table for the last five deposits. (Ensure that you show how you obtained your starting value for the table.) Describe and apply a sanity check to your table.