Question: Johnston Industries Ltd. plans to replace a warehouse in 15 years at an estimated cost of $250,000. To pay for the replacement, a sinking fund

Johnston Industries Ltd. plans to replace a warehouse in 15 years at an estimated cost of $250,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every six months. The fund is growing at 8.00% compounded semi-annually.

a. What is the size of the semi-annual payments?

Round up to the next cent

b. What is the sinking fund balance at the end of 3 years?

Round to the nearest cent

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