You landed an internship with a local company over the summer. The internship will involve overseeing the
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Question:
You landed an internship with a local company over the summer. The internship will involve overseeing the operations of the company's pension fund. Your first task is to determine if the company's pension account has enough fund to meets its obligations. Your manager estimates that the fund will need to make the following cash payments over the next 20 years.
-$20 million a year during the first 10 years (i.e. years 1-10)
-$10 million a year during the last 10 years (i.e. year 11-20)
How much would the fund need to have right now to meet these obligations, if the interest rate on its deposits is 6%?
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