Answer:
Total donation= $76,000,000
Explanation:
Giving the following information:
These maintenance costs are expected to be $1 million each year for the first five years, $1.3 million each year for years 6 through 10, and $1.5 million each year after that. The money is placed in the account that will pay a 5% interest compounded annually.
First, we need to calculate the final value of the donation:
We have 3 perpetual annuities.
FV= 1,000,000/0.05= 20,000,000
FV= 1,300,000/0.05=26,000,000
FV= 1,5000,000/0.05= 30,000,000
Total donation= $76,000,000
