Question: 4. (5 marks) Western Oil plans to create a sinking fund of $20000 to replace a pick-up truck by making equal deposits at the end

4. (5 marks) Western Oil plans to create a sinking fund

4. (5 marks) Western Oil plans to create a sinking fund of $20000 to replace a pick-up truck by making equal deposits at the end of every three months for four years. Interest is 4% compounded quarterly. (a) What is the size of the semi-annual deposit into the fund? (3) (b) What is the total amount deposited into the fund?(1) Answer: (c) How much of the fund will be interest? (1)

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