A company must pay a 304000 settlement in 3 years What amoun

A company must pay a $304,000 settlement in 3 years. What amount must be deposited now at 7% compounded semiannually to have enough money for the settlement? How much interest will be earned? Suppose the company can deposit only $100,000 now. How much more will be needed in 3 years? The amount that must be deposited is (Round to the nearest cent as needed.) will be earned. (Round to the nearest cent as needed.) more will be needed in 3 years. (Round to the nearest cent as needed.)

Solution

1) $ 372413 2) $ 68413 3) It needs $372413 but paying $100000, hence amount after 3 years be $2004000, Amount to be paid after 3 years = $ 3007463