Sinking Fund. A $1 million bond issue is outstanding. Assume deposits earn 8 percent per annum. Calculate the amount to be deposited to a sinking fund each year in order to accumulate enough money to...

Sinking Fund. A $1 million bond issue is outstanding. Assume deposits earn 8 percent per annum. Calculate the amount to be deposited to a sinking fund each year in order to accumulate enough money to retire the entire $1 million issue at the end of 20 years. (CFA, adapted.)