Jerry Higgins bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 5 years. Until then, he pays 6% interest, compounded semiannually.

a. Find the amount of each semiannual interest payment.

b. Jerry sets up a sinking fund so that enough money will be present to pay off the $4000. He wants to make annual payments into the fund. The account pays 8% compounded annually. Find the amount of each payment into the fund.

c. Prepare a table showing the amount in the sinking fund after each deposit.