Question: A sinking fund is an increasing annuity set up by a corporation or government to repay a large debt at some future date. Exercises concern

A sinking fund is an increasing set up by a or government to repay a large debt at some future date. Exercises concern such annuities.
1. A city has a debt of $1,000,000 due in 15 years. How much money must it deposit at the end of each half year into a sinking fund at 4% interest compounded semiannually in order to pay off the debt?
2. A wishes to deposit money into a sinking fund at the end of each half year in order to repay $50 million in bonds in 10 years. It can expect to receive a 6% (compounded semiannually) return on its deposits to the sinking fund. How much should the deposits be?

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