HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of ​$55,000. To pay for the​ replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5​% quarterly.   ​(a) What is the size of the periodic​ payment? ​(b) What is the accumulated balance just after the 32th ​payment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
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HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of ​$55,000. To pay for the​ replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5​% quarterly.
 
​(a) What is the size of the periodic​ payment?
​(b) What is the accumulated balance just after the 32th ​payment?
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