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When Pacific Inc. bid for a project with the government, the company was offered the following two payment options: Option (A): A payment of $632,500

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

Option (A): A payment of $632,500 at the end of 4 years, which is the scheduled completion time for the project. Option

(B): $225,000 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 monthly, calculate the balance payment offered in Option(B).

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