Question: HY Industries Ltd . plans to replace a warehouse in eleveneleven years at an anticipated cost of $ 5 0 , 0 0 0 .

HY Industries Ltd. plans to replace a warehouse in eleveneleven years at an anticipated cost of $50,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every 6 months. Interest is 9% semi annually.
(a) What is the size of the periodic payment?
(b) What is the accumulated balance just after the 18th payment?

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