To determine the annual contribution required to the sinking fund to accumulate sufficient funds to repay the bond at maturity, we can use the future value of an ordinary annuity formula.
The formula to calculate the future value (FV) of an ordinary annuity is:
\[
FV = C \times \frac{(1 + r)^n - 1}{r}
\]
where:
- \( FV \) = future value of the annuity (in this case, the face value of the bond, $10,000,000)
- \( C \) = annual contribution to


