A sinking fund is set up so that level annual payments will accumulate, ati%p.a compounding annually, to $50,000 in 10 years. Assuming the payments made are at each year-end, after exactly 5 years the sinking fund will be:

[Note: a sinking fund allows for money to be set aside by periodical deposits in order to accumalte an amout to e.g replace equipment or repay debt due at a future date]

Select one:

a.Less than $25,000

b.Greater than $25,000

c.Equal to $25,000