Harper Enterprises has been awarded an insurance settlement of $5,000 at the end of each 6-month

Harper Enterprises has been awarded an insurance settlement of $5,000 at the end of each 6-month period for the next 10 years.

a. As their accountant, calculate how much the insurance company must set aside now, at 6% interest compounded semiannually, to pay this obligation to Harper.

b. (Optional) Use the present value of an ordinary annuity formula to calculate how much the insurance company would have to invest now if the Harper settlement was changed to $2,500 at the end of each 3-month period for 10 years, and the insurance company could earn 8% interest compounded quarterly.

c. (Optional) Use the present value of an annuity due formula to calculate how much the insurance company would have to invest now if the Harper settlement was paid at the beginning of each 3-month period rather than at the end.