1. A firm leases equipment that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6.25%. What is the value of the leased asset at inception of the lease?

2. Denver Company, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $600,000. The deposits are made on the last day of each year, and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds. If not, what will the deficiency be?

** please show work and explain step by step. I'm struggling with this a lot!