Consider the case of Tanya, who is 50 years old and has loved animals all her life. She wants to make a donation to the animal shelter near her house, but she is a little worried about her post-retirement income. Therefore, Tanya decides to invest in a charitable gift annuity in which the animal shelter promises to pay Tanya $10,000 each year for four years after she turns 65. The payments will be made at the end of each year. The contract of the charitable gift annuity includes an annual rate of return of 4%.

How much money should Tanya deposit in the charitable gift annuity to receive $10,000 for four years after she turns 65 years old?(Note: Round intermediate calculation to two decimal places.)

Answer rating: 100% (QA)

To calculate how much money Tanya should deposit in the charitable gift annu... View the full answer