A Company wishes to set up an endowment to fund research into the financial markets and is approaching wealthy investors for donations. A Company has determined that it needs S$500,000 per year to be able to carry out its research. It has also calculated that the costs of research will increase by 2.5% per annum. The research will commence from the end of Year 3 and if market interest rates are 5%.

How much does A Company need to raise from investors to set up the endowment?

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To calculate the amount that A Company needs to raise from investors to set up the endowment we ca... View the full answer