Williams Software borrowed $1,750,000 through a bond issued to purchase new servers. It established a sinking fund to retire this debt in five years and made deposits into it at the beginning of every six months. The fund earned 9% compounded semi-annually during the period.

a. Calculate the size of the periodic payments deposited into the fund.

b. Construct a partial sinking fund schedule showing the details for the first two and last two payments and the totals of the schedule.

Answer rating: 100% (QA)

The question is complete a Calculate the size of the periodic payments deposited into the fund The sinking fund formula is given by P F r 1 r n 1 wher... View the full answer