Justin Lumberpond has had a few difficult years. His well publicized break-up with a head shaving pop singer, the the unfortunate wardrobe malfunction at the superbowl and recently another break up. Now with a new album and his life turned around, Justin has decided to turn his energy to charity and create a scholarship for plumbers. The scholarship is to pay $2,000 per semi-annual period in perpetuity and is to be awarded to the top plumbing student specializing in sinks. Lumberpond can earn 6% compounded semi-annually in long term bonds.
a. How much should he set aside if the first payment is in six months?
b. How much should he set aside if the first payment is today?