Question: An engineering school has just completed a new engineering complex worth $50 million dollars. A campaign, targeting alumni, is planned to raise funds for maintenance
An engineering school has just completed a new engineering complex worth $50 million dollars. A campaign, targeting alumni, is planned to raise funds for maintenance costs, which are estimated at $2 million per year. Any unforeseen costs above $2 million per year would be obtained by raising tuition. Assuming that the school can create a trust fund that earns 10% interest annually, how much has to be raised now to cover the perpetual string of $2 million annual costs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
