A company must pay a $307,000 settlement in 3 years.
(a) What amount must be deposited now at 6% compounded semiannually to have enough money for the settlement?
(b) How much interest will be earned?
(c) Suppose the company can deposit only $200,000 now. How much more will be needed in 3 years?
(d) Suppose the company can deposit $200,000 now in an account that pays interest continuously. What interest rate would they need to accumulate the entire $307,000 in 3 years?