You are chairperson of the investment fund

for the Continental Soccer League. You are asked to set up a fund of semiannual payments

to be compounded semiannually to accumulate a sum of $250,000 after 9 years at an 10

percent annual rate (18 payments). The first payment into the fund is to take place six

months from today, and the last payment is to take place at the end of the 10th year.

a

.

Determine how much the semiannual payment should be. (Round to whole numbers.)

On the day after the sixth payment is made (the beginning of the fourth year) the interest

rate goes up to a 12 percent annual rate, and you can earn a 12 percent annual rate on funds

that have been accumulated as well as all future payments into the fund. Interest is to be

compounded semiannually on all funds.

b

.

Determine how much the revised semiannual payments should be after this rate

change (there are 12 payments and compounding dates). The next payment will be in

the middle of the fourth year. (Round all values to whole numbers.)