1. Strikler, Inc., has issued a $10 million, 10-year bond issue. The bonds require Strikler to establish a sinking fund and make 10 equal, end-of-year deposits into the fund. These deposits will earn 8 percent annually, and the sinking fund should have enough accumulated in it at the end of 10 years to retire the bonds. What are the annual sinking fund payments?
2. Construct a loan amortization schedule for a 3-year, 11 percent loan of $30,000. The loan requires three equal, end-of-year payments.