step A sinking fund is set up so that level annual payments will accumulate, at i %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 Business Finance ACST 101