Solve the application problem.

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.

Payment Number	Amount of Deposit	Interest Earned	Total in Account

Solve the application problem.

Joann Gretz decides to place half of her $2000 deposit at the end of each year into the bond fund and half into the stock fund. Assume the bond fund earns 6% compounded annually and the stock fund earns 10% compounded annually. Find the amount available in 33 years.

At age 37, Paul Li decides to plan for his retirement at age 67. He currently has a net worth of about $45,000 including the equity in his home. He assumes that his employer will contribute$3500 to his retirement plan at the end of each year for the next 30 years. He plans to put one-half of his money in a mutual fund containing stocks and the other one-half in a mutual fund containing bonds.

Li is amazed that he will be able to accumulate over $600,000. However, he knows that inflation will increase his cost of living significantly in 30 years. He assumes 3% inflation and wants to find the income he needs at age 67 to have the same purchasing power as$40,000 today.

Find the present value of the annuity. Round to the nearest cent.

Use the bond table in this problem to find the following for Allied Waste of North America (RSG) maturing in $2016$. (See the Examples discussed before.)

Volume of bonds sold during the week $\qquad\underline{\qquad\qquad\qquad\qquad}$

Find the amounts of the annuity.