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Calculus: An Applied Approach (Min...
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Calculus: An Applied Approach (Min...
Charitable Foundation A charitable foundation wants to help schools buy tablet computers. The foundation plans to donate $35,000 each year to one school beginning one year from now, and the foundation has at most $500,000 to start the fund. The foundation wants the donation to be given out indefinitely. Assuming an annual interest rate of
Whether the charitable foundation, who wants to donate $35,000 each year to one school, have enough money to start the school fund.
Given Information:
The charitable foundation has $500,000 to start the fund and plans to donate $35,000 each year to one school at an annual interest rate of 8% compounded continuously.
Present value of Perpetuity is:
Here,
Interest in fraction form is:
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