A)A debt of $5,000with interest at 5%compounded semiannually is to be i. Find the regular payment (5marks)
made into a fund earning 3%,
b)A debt of $5,000duein 5 years without interest is to be discharged by the
ii. Construct a sinking fund schedule for the discharge of the debt.
sinking fund method. If 5equal annual deposits, the first due in one year, are
amortised by equal semiannual payments over the next 3 years, the first due
ii. Construct an amortization schedule for the debt.
in 6months.
i. Find thesize of the deposit.