Find how much must be deposited now if the fund will earn

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An open-pit mine must fund an account now to pay for maintenance of a tailing pond in perpetuity(after the mine shuts down in 30 years). The costs until shutdown are part of the mine's operating costs. The maintenance costs begin in 31st year at $300,000 annually. How much must be deposited now if the fund will earn 5% interest? How much does this change if the interest rate is 4% ?

Reference no: EM13299464

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