A company must pay a 308000 settlement in 7 years What amoun

A company must pay a $308,000 settlement in 7 years. What amount must be deposited now at 4% 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 7 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 7 years. (Round to the nearest cent as needed.)

Solution

a)p= (308000)/(1 + 0.04/2)^14 =233,425.51$ b)i=308000-233,425.51 =74,574.49 c)308000-100000 =208000.00