Chris borrows an amount of $L to be repaid under the sinking fund method. At the end of (11) each year for 15 years, Chris will pay the interest on the loan and make a deposit into the sinking fund. The amount to be deposited into the sinking fund is such that the sinking fund will be equal to $L at the end of 15 years. The annual effective interest rate on the loan is 9% while the sinking fund will earn an annual effective interest rate of 6%. At the end of 5 years, the amount in the sinking fund is $104,728.58.
(a) Determine the amount of each deposit into the sinking fund.
(b) Determine the value of L.
(c) Determine the amount of interest paid on the loan each year