Payout the same continuous amount each year thereafter

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A major benefactor approaches the University of Arkansas and expresses a desire to make a gift in perpetuity of $10 million. The benefactor specifies that the money is to earn a continuous compounding rate of 5% and is to pay out money to the Department of Industrial Engineering in a continuous stream as a ramp function for the first 5 years and then level off and payout the same continuous amount each year thereafter. Using Laplace transforms, determine the continuous amount of money the department can expect to receive each year after 5 years. Your work will not be counted correct if your answer is not based on Laplace transform calculations.

Reference no: EM131442389

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