pollo enterprises has been awarded an insurance settlement of 6,000 at the end of each 6 month period for the next 12 years (round your answer to the nearest cent) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to apollo (b) how much (in $) would the insurance company have to invest now if the apollo settlement was charged to 3,000 at the end of each 3 month period for 12 years and the insurance company earned 8% interest compounded quarterly? (c) how much (in $) would the insurance company have to invest now if the apollo settlement was paid at the beginning of each 3 month period rather than the end?
pollo enterprises has been awarded an insurance settlement of 6,000 at the end of each 6 month period for the next 12 years (round your answer to the nearest cent) (a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to apollo (b) how much (in $) would the insurance company have to invest now if the apollo settlement was charged to 3,000 at the end of each 3 month period for 12 years and the insurance company earned 8% interest compounded quarterly? (c) how much (in $) would the insurance company have to invest now if the apollo settlement was paid at the beginning of each 3 month period rather than the end?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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apollo enterprises has been awarded an insurance settlement of 6,000 at the end of each 6 month period for the next 12 years (round your answer to the nearest cent)
(a) As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to apollo
(b) how much (in $) would the insurance company have to invest now if the apollo settlement was charged to 3,000 at the end of each 3 month period for 12 years and the insurance company earned 8% interest compounded quarterly?
(c) how much (in $) would the insurance company have to invest now if the apollo settlement was paid at the beginning of each 3 month period rather than the end?
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