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).

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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Question

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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