macOS 11 Big Sur Arrives Thursday, Delay Upgrades

Unfortunately, your iMac is too new to use Target Display Mode. You could attempt to use screen forwarding software although if that yields sufficient performance depends a lot on what you do. You definitely don’t want to use it for games or video display.

If I were you I’d see that I can get a few bucks off of selling that old iMac and put that towards a new monitor. There are good large monitors for few hundred Dollars these days (Dell 4k for $315 or same with P3 for $245 more). I’m afraid your case once again illustrates what some people say is an inherent problem with the iMac. Why throw away a perfectly good screen just because you need to upgrade the computer?

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