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A company must pay a
$304,000
settlement in
6
years.
(a) What amount must be deposited now at
5%
compounded semiannually to have enough money for the settlement?
(b) How much interest will be earned?
(c) Suppose the company can deposit
$100,000
now in an account that pays interest continuously. What interest rate would they need to accumulate the entire
$304,000
in
6
years?
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