When Pacific Inc. bid for a project with the government, the company was offered the following two payment options: Option (A): A payment of $735,000 at the end of 4 years, which is the scheduled completion time for the project. Option (B): $220,000 paid upfront at the beginning of the project and the balance payment in 4 years. If the two payments are financially equivalent and the interest rate is 3.84% compounded semi-annually, calculate the balance payment offered in Option(B).

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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When Pacific Inc. bid for a project with the government, the company was offered the following two payment options: Option (A): A payment of $735,000 at the end of 4 years, which is the scheduled completion time for the project. Option (B): $220,000 paid upfront at the beginning of the project and the balance payment in 4 years. If the two payments are financially equivalent and the interest rate is 3.84% compounded semi-annually, calculate the balance payment offered in Option(B). 

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