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A company must pay a $303,000 settlement in 4 years. (a) What amount must be deposited now at 5% compounded semiannually to have enough money
A company must pay a $303,000 settlement in 4 years. (a) What amount must be deposited now at 5% compounded semiannually to have enough money for the settlement? (b) How much interest will be earned? (c) Suppose the company can deposit only $200,000 now. How much more will be needed in 4 years? (d) Suppose the company can deposit $200,000 now in an account that pays interest continuously. What interest rate would they need to accumulate the entire $303,000 in 4 years
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