Question
Jordan is considering building a nuclear power plant, which will be ready for production in 2030. The country's governing body is also considering a decommissioning
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Jordan is considering building a nuclear power plant, which will be ready for production in 2030. The country's governing body is also considering a decommissioning liability law for the operator to put aside $1 million every month towards decommissioning costs. If the production life of the plant is 55 years and the operator puts the money at the end of the month in a savings account, earning 7% compounded annually, what will be the value of the decommissioning fund after 55 years of production?
a. $622 million
b. $629 million
c. $485 million
d. $7.13 billion
e. $315 million
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