To provide for expansion, Champlain Company has established a sinking fund earning 7% semi-annually. The fund is

Question:

To provide for expansion, Champlain Company has established a sinking fund earning 7% semi-annually. The fund is anticipated to reach a balance of $72 000 in 15 years. Payments are made at the beginning of every 6 months.
(a) What is the size of the semi-annual payment?
(b) What is the accumulated balance at the end of the 20th payment period?