A foundation was endowed with $10,000,000 in July 2000. In July 2004, $3,000,000 was expended for facilities,

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A foundation was endowed with $10,000,000 in July 2000. In July 2004, $3,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense was in July 2005, and the first replacement expense is in July 2009. If all money earns interest at 5% after the time of endowment, what amount would be available for capital replacements at the end of every fifth year forever?
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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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