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How much will be donated to charity in two years

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Problem 1: The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year from today, and $200,000 two years from today. The government will hold the funds until the final payment is collected and then donate the entire amount to charity. The government has agreed to pay annual interest of 3 percent on the held funds.

Question 1: How much will be donated to charity in two years?

Reference no: EM132468857

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