When Pacific Inc. bid for a project with the government, the company was offered the following two payment options:

Option (A): A payment of $837,500 at the end of 4 years, which is the scheduled completion time for the project.

Option (B): $220,000 paid upfront at the beginning of the project and the balance payment in 4 years.

If the two payments are financially equivalent and the interest rate is 3.48% compounded semi-annually, calculate the balance payment offered in Option(B)