An Alumnus of West Virginia University whishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at I = 8% per year is closest to:
- $190,820
- $122,280
- $127,460
- $132,040
How much must be deposit in your retirement account each year for 10 years starting now if you want to be able to withdraw $50,000 per year forever beginning 30 years from now? Assume the account earns interest at 10% per year.
- $4,239
- $4,662
- $4,974
- $5,471
Additional Requirements
Level of Detail: Only answer needed