The Cowichan Regional District borrowed $500,000 through the Provincial Finance Authority to purchase firefighting equipment. At the end of every 6 months, the regional district must make a sinking fund payment of a size calculated to accumulate $500,000 after 7 years to repay the principal amount of the debt. The sinking fund earns 7% compounded semiannually. Construct a partial sinking fund schedule showing details of the first two and the last two payments. Round the sinking fund payments and periodic interest earnings to the nearest dollar.

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The Answer of The Cowichan Regional District borrowed $500,000 through the Provincial Finance Authority to purchase firefighting equipment. At the end of every 6 months, the regional district must make a sinking fund payment of a size calculated to accumulate $500,000 after 7 years to repay the principal amount of the debt. The sinking fund earns 7% compounded semiannually. Construct a partial sinking fund schedule showing details of the first two and the last two payments. Round the sinking fund payments and periodic interest earnings to the nearest dollar.

The Cowichan Regional District Borrowed $500,000 Through the Provincial Finance