Permanent fund for supporting research on sustainability

Assignment Help Business Economics

Reference no: EM13854236

A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per year can be withdrawn each year forever, beginning in year six. If the fund earns interest at a rate of 8% per year, how much money must be donated during each of years 0 through 5?

Reference no: EM13854236

Questions Cloud

Concepts of market period and short-run-long-run period : Why would one be unable to associate particular amounts of calendar time with the concepts of market period, short-run period, long-run period and historical period ? List as many reasons as you can why the low of diminishing retunes or variable prop..

Explain work point to different issues with government : Write a 2-3 page paper in a reasonable font and observing all the normal rules of grammar and style. Make sure that you have a clear and specific answer to the question asked: a thesis. Be sure to base your answer to this question on primary sou..

Desired capital-user cost and goods market equilibrium : You own a golf course in Florida and you need to determine how many golf carts you need to buy to maximize profits. What is the user cost of capital and what is it expressed in? Now suppose the (local) government with all their financial shortfalls e..

Major types of e-commerce websites : Search the web for an example of each of the 4 major types of e-commerce websites (B2B, B2C, C2C and C2B) with screen shots complete URL and explain why it fits into one of the four types of e-commerce

Permanent fund for supporting research on sustainability : A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per ye..

What happened during the great recession : Which of the following statements is consistent with what happened during the Great Recession? Identify whether the following statement is more likely to come from a classical economist or a Keynesian economist. “The recent decline in consumer confid..

What is meant by the events of the decision : What is meant by the events of the decision? And give examples of incidents decision!

What is the value of government securities the fed : Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?

What are the critical factors : What are the critical factors (Critical Success Factor) of a business process development?

User Account

All Pages