You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 3 years, you will give the school $800,000. The first payment will occur 3 years from today. If the interest rate is 7.7% per year, what is the present value of your gift?

You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 3 years, you will give the school $800,000. The first payment will occur 3 years from today. If the interest rate is 7.7% per year, what is the present value of your gift?

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 15E

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