Seth borrows $1000 at 5% for 20 years from Sojourner. After 10 years, Sojourner sells the rights to future payments to Johnathon for $P.
(a) Find P, if Johnathon plans to accumulate a sinking fund at 4% to replace P and desires a yield of 6%.
(b) Find the yield rate Sojourner earned on her investment.