20. RARE STAMPS Jeff Reschke bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 5 years. Until then, he pays 6% simple interest every 6 months. (a) Find the amount of...

Extracted text: 20. RARE STAMPS Jeff Reschke bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 5 years. Until then, he pays 6% simple interest every 6 months. (a) Find the amount of each semiannual interest payment. (b) Reschke sets up a sinking fund so that money will be available 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. (a) (b) Payment Amount of Interest Total in Number Deposit Earned Account