Answer:
$952,853.88
Explanation:
The lump sum payment can be calculated using the present value of annuity formula which shall be calculated as follows:
Present value of annuity=R((1-(1+i)^-n)/i)=lump sum payment today
Where R=semi annual payment=$202,000
n=number of semi annual payments=4 since first payment is to be received today
i=interest rate=3%(6/2) in this case since the payments are semi annual.
Lump-sum payment=202,000+202,000((1-(1+3%)^-4)/3%)
=$952,853.88
