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36 votes
The Massive Chemical Corporation starts an annuity to pay for the huge government penalties they expect in 11 years when a pending case finally gets litigated.Their lead attorney informs them that they can expect a $4,000,000 fine. An investment house offers 11.5% interest on annuities of that size, compoundedsemiannually. What will the semiannual payment be on this annuity? Round to the nearest cent.

User Jun Tian
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1 Answer

4 votes
4 votes

To solve this problem we can use the formula for compound interes so the equation is:


Y=P_o(1+I)^t

User Tiffany Harry
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