Question

A major drug company anticipates that in future years it could be involved in PROBLEMS 85 litigation regarding perceived side effects of one of its antidepressant drugs. To prepare a "war chest," the company wants to have money available 6 years from now that has a present worth today of $50 million. The company expects to set aside $6 million the first year and uniformly increasing amounts in each of the next 5 years. If the company can earn 12% per year on the money it sets aside, by how much must it increase the amount set aside each year to achieve its goal?

Answer 1

Answer:

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