Question: HY Industries Ltd. plans to replace a warehouse in 12 years at an anticipated cost of $45000. To pay for the replacement, a sinking fund

HY Industries Ltd. plans to replace a warehouse in 12 years at an anticipated cost of $45000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 10% com- pounded quarterly.
(a) What is the size of the quarterly payments?
(b) What is the accumulated balance just after the 16th payment?

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