1. The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to meet their goal?
2. A sinking fund is established to discharge a debt of $80,000 in 10 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 8%, compounded semiannually, what is the amount of each deposit?