7. Morocco University has just finished a new agriculture complex worth $50 million. Future maintenance costs are estimated at $2 million per year will be fund raising from the public. Assuming that the University can create a trust fund that earns 8% interest annually. How much has to be raised now to cover the perpetual string of $2 million annual costs?

7. Morocco University has just finished a new agriculture complex worth $50 million. Future maintenance costs are estimated at $2 million per year will be fund raising from the public. Assuming that the University can create a trust fund that earns 8% interest annually. How much has to be raised now to cover the perpetual string of $2 million annual costs?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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