Irfaz and Izhaar Fitness Company is establishing a fund to make a down payment of a new gym. The deal will require $950,000 at the end of 5 years.

(a) The company plans to put a fixed amount into the fund each year for 5 years, the first payment to be made in one year. Assume the fund will earn 12% per annum. What annual contribution must be made to accumulate $950,000 at the end of 5 years?

(b) If Irfaz and Izhaar Fitness company decides to set aside a lump sum today at 12% instead of making annual payments, how much should this sum be?