The Township of Langley borrowed $300 000 for road improvements. The debt agreement requires that the township pay the interest on the loan at the end of each year and make equal deposits at the time of the interest payments into a sinking fund until the loan is retired in 20 years. Interest on the loan is 8.25% compounded annually, and interest earned by the sinking fund is 5.5% compounded annually. (Round all answers to the nearest dollar.)
(a) What is the annual interest expense?
(b) What is the size of the annual deposit into the sinking fund?
(c) What is the total annual cost of the debt?
(d) How much is the increase in the sinking fund in the 10th year?
(e) What is the book value of the debt after 15 years?
(f) Construct a partial sinking fund schedule showing details, including the book value of the debt, for the first three years, the last three years, and totals.