On January 1, 2006, Gray Company sold $800,000 of 10% bonds, due January 1, 2016. Interest on these bonds is paid on July 1 and January 1 each year. According to the terms of the bond contract, Gray must establish a sinking fund for the retirement of the bond principal starting no later than January 1, 2014. Since Gray was in a tight cash position during the years 2006 through 2011, the first contribution into the fund was made on January 1, 2012.

Case 1: Assume that, starting with the January 1, 2012 contribution, Gray desires to make four equal annual contributions into this fund. Compute the amount of each of these contributions assuming the interest rate is 8% compounded annually.

Case 2: Assume, instead, that starting with the January 1, 2014 contribution, Gray desires to make five equal semiannual contributions into this fund. Compute the amount of each of these contributions assuming the annual interest rate is 12%, compounded semiannually.

Case 3: On January 2, 2012, Nelson Company loaned $90,000 to Holt Company. The terms of this loan agreement stipulate that Holt is to make five equal annual payments to Nelson at 10% interest compounded annually. Assume the payments are to begin on December 31, 2012. Compute the amount of each of these payments.