Toni decides to establish an endowment fund to benefit one Bcum Project Finance student at UNY each year. She would like the fund to pay a qualified student each year a one-time grant of US$1,200. However, this annual on-off grant to each student is growing at the rate of 4% to account for inflation. She estimates that the fund could earn an interest rate of 7% per annum. How much should Tony deposit in the fund today?

Question No. 7: What is the future value of $12,000 for 4.5 years continuously compounding at 10.5%?

Answer rating: 100% (QA)

To calculate the future value of 12000 continuously compounded at 105 for 45 years we can use the ... View the full answer