A non-government agency is funding annual seminar on campus by using earnings of a $100,000 gift. It is estimated that 12% interest rate will be realized in the first 10 years, but only 6% may be anticipated after that. i. What uniform annual payment may be established from the beginning to fund the seminar at the same level into infinity? ii. An additional gift of $10000 was received in the agency at the end of 5 years, which they have deposited in the seminar account. What will be the new annual payment starting from 6th year to infinity?

A non-government agency is funding annual seminar on campus by using earnings of a $100,000 gift. It is estimated that 12% interest rate will be realized in the first 10 years, but only 6% may be anticipated after that. i. What uniform annual payment may be established from the beginning to fund the seminar at the same level into infinity? ii. An additional gift of $10000 was received in the agency at the end of 5 years, which they have deposited in the seminar account. What will be the new annual payment starting from 6th year to infinity?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 24E

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