Question: 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 $310,000 After Ten Years At A 14 Percent Annual Rate (20 Payments). The First Payment Into The Fund Is To Take Place Six Months From Today, And The Last Payment Is To …

You are chairperson of the investment fund for the ContinentalSoccer League. You are asked to set up a fund of semiannualpayments to be compounded semiannually to accumulate a sum of$310,000 after ten years at a 14 percent annual rate (20 payments).The first payment into the fund is to take place six months fromtoday, and the last payment is to take place at the end of thetenth year. Use Appendix A and Appendix C for an approximateanswer, but calculate your final answer using the formula andfinancial calculator methods.

**a.** Determine how much the semiannual paymentshould be **I GOT THIS ANSWSER: 7561.81**

On the day after the sixth payment is made (the beginning of thefourth year), the interest rate goes up to an annual rate of 16percent. This new rate applies to the funds that have beenaccumulated as well as all future payments into the fund. Interestis to be compounded semiannually on all funds.

**b.** Determine how much the revised semiannualpayments should be after this rate change (there are 14 paymentsand compounding dates). The next payment will be in the middle ofthe fourth year. **(Do not round intermediate calculations.Round your final answer to 2 decimal places.)**