Alpha Corporation is depositing equal sums of money at the beginning of every three months into a sinking fund to redeem a $65 000 promissory note due eight years from now. Interest earned by the fund is 12% compounded quarterly.
(a) Determine the size of the quarterly payments into the sinking fund.
(b) Compute the balance in the fund after three years.
(c) Compute the increase in the fund during the 24th payment interval.
(d) Construct a partial sinking fund schedule showing details of the first three deposits, the last three deposits, and totals.