Perpetuity with an annually compounded discount rate

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In 30 years, Andy plans on setting up a fellowship fund for his wife's school that pays out $100, 000 per year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much does Andy need to save each year (starting this year) assuming he can get a semi-annually compounded return of 10% per annum on his savings for the next 30 years?

Reference no: EM131304192

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Perpetuity with an annually compounded discount rate : In 30 years, Andy plans on setting up a fellowship fund for his wife's school that pays out $100, 000 per year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much does Andy need to save eac..

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