You want to endow an annual graduation party at your university. You want it to be...

 

Transcribed Image Text:

You want to endow an annual graduation party at your university. You want it to be great, so you budget $30,000 for next year's party. If the university earns 8% per year on its investments, and if the first party is in one year's time, how much will you need to donate? How much will you need to donate if the first party is this year? How much should you donate if the first party is in two years? You want to endow an annual graduation party at your university. You want it to be great, so you budget $30,000 for next year's party. If the university earns 8% per year on its investments, and if the first party is in one year's time, how much will you need to donate? How much will you need to donate if the first party is this year? How much should you donate if the first party is in two years?

Answer rating: 100% (QA)

SOLUTION If the first party is in one years time you will need to donate the present value of 3... View the full answer