You set up a fund of semiannual payments for your club to be compounded semiannually and to accumulate to $200,000 after 10 years at an 8% annual rate.

The first payment is to take place in 6 months from today and the last payment will take place at the end of the 10^thyear.

Show your work for full credit consideration.

A) How much should the semiannual payment be...?

On the day after the 6^thpayment is made (beginning of the 4^thyear) the interest rate goes up to 10% annually, so you earn 10% on the funds accumulated as well as all future payments into the fund.Interest is compounded semiannually on all funds.

B) How much should the revised semiannual payment be after this rate change.