An investment project has an initial cost of $260 and cash flows $75, $105, $100, and $50 for Years 1 to 4, respectively. The co
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Answer:
The uniform amount that can be used for scholaship, every year, first being at the end of the first year is $1,745.14
Explanation:
Hi, in order to find the amount that can be used to pay for school so the balance would last forever, given that $30,000 were left in the savings account, we need to solve for A the following equation.
Where;
r1 = 7%
r2 = 5%
n = 10
PresentValue = $30,000
Everything should look like this:
So, uniform amount that could be used for the student scholarship each year, beginning at the end of the first year and continuing forever is $1,745.14
Best of luck.