A company sold $200,000 bonds and set up a sinking fund that was earning 8.5% compounded semi-annually to retire the bonds in five years. If it made equal deposits into the fund at the beginning of every six months, construct a partial sinking fund schedule showing the details for the first two and last two payments and the totals of the schedule. Round the payment up to the next cent. Round all other values to the nearest cent Payment Period Payment Interest Earned Increase in the Fund Fund Balance Book Value

2. Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal payments at the end of every three months into a sinking fund for five years. Interest earned by the fund is 8% compounded quarterly. a. What is the size of the quarterly payment made to the sinking fund?  b. How much of the maturity value of the fund will be interest?  c. What is the accumulated value of the fund after two years?  d. How much interest will the fund earn in the 15th payment interval? Using BA II Plus Calculator

$4,250 was deposited at the end of every six months for 5 years into a fund earning 2.2% compounded semi-annually. After this period, the accumulated money was left in the account for another 4 years at the same interest rate. a) Calculate the accumulated amount at the end of the 9-year term. $ b) Calculate the total amount of interest earned during the 9-year period.

Suppose the Omega Graphics Company wishes to set aside an equal, annual, end-of-year amount in a “sinking fund account” earning 8.5 percent per annum over the next six years. The firm wants to have $5 million in the account at the end of six years to retire (pay off ) $5 million in outstanding bonds. How much must be deposited in the account at the end of each year?  Hint: Use the math formula.