Justin Lumber pond has had a few difficult years. His well publicized break up with a head shaving pop singer, the the unfortunate wardrobe malfunction at the super bowl and recently another break up. Now with a new album and his life turned around, Justin has decided to turn his energy to charity and create a scholarship for plumbers. The scholarship is to pay $2,000 per semi-annual period in perpetuity and is to be awarded to the top plumbing student specializing in sinks, Lumber pond can earn compounded semi-annually in long term bonds 

a How much should be set aside of the first payment is in she months? 

b. How much should he set aside if the first payment is today?

Answer rating: 100% (QA)

Amount A 2000 semi annually Rate 6 compounded semi annually Thus r ... View the full answer