Kirk, Klein & Co. requires $100 000 fifteen years from now to retire a debt. A sinking fund is established into which equal payments are made at the end of every month. Interest is 7.5% compounded monthly.
(a) What is the size of the monthly payment?
(b) What is the balance in the sinking fund after five years?
(c) How much interest will be earned by the fund in the 100th payment interval?
(d) By how much will the fund increase during the 150th payment interval?
(e) Construct a partial sinking fund schedule showing details of the first three payments, the last three payments, and totals.