Question
Apollo Enterprises has been awarded an insurance settlement of $3,000 at the end of each 6 month period for the next 12 years. (Round your
Apollo Enterprises has been awarded an insurance settlement of $3,000 at the end of each 6 month period for the next 12 years. (Round your answers to the nearest cent.)
(a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo. $
(b) How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $1,500 at the end of each 3 month period for 12 years and the insurance company earned 8% interest compounded quarterly? $
(c) How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end?
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