A collector bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 8 years. Until then, he pays 6.3% simple interest semiannually. (a) Find the amount of each semiannual interest payment. (b) The collector 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 9% compounded annually. Find the amount of each payment. because the payments are equal (a) During the 8 years until the lump sum is due, the collector will be making payments calculated using the Vinterest formula. Meanwhile, the payments to the sinking fund form an and made at the end of each period. Therefore, the formula V should be used to calculate the payments to the sinking fund. A collector bought a rare stamp for his collection. He agreed to pay a lump sum of $4000 after 8 years. Until then, he pays 6.3% simple interest semiannually. (a) Find the amount of each semiannual interest payment. (b) The collector 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 9% compounded annually. Find the amount of each payment. because the payments are equal (a) During the 8 years until the lump sum is due, the collector will be making payments calculated using the Vinterest formula. Meanwhile, the payments to the sinking fund form an and made at the end of each period. Therefore, the formula V should be used to calculate the payments to the sinking fund