Assignment Problem: Mrs. Torri is a baseball player who plays as an outfield for Chicago Red Sox's, a top-ranked first-division baseball team. Mrs. Torri has decided to invest his annual bonus in an investment account, which offers 7 percent interest per year. Mrs. Torri yearly bonus, based on his current contract with the team, is $7,950,000 this year. Mrs. Torri is confident that his bonus will increase at a constant rate of 6 percent per year over the next five years. If Mrs. Torri does not withdraw any money from the investment account, how much money after tax can he accumulate in the investment account at the end of year 5?
Red Sox's pays players bonuses at the end of each year. Mrs. Tori must pay a flat tax rate of 28 percent.
Suppose Mrs. Tori decides to donate the balance of the investment account (at the end of year five) to Youth Baseball League Association , starting in year six and going through infinity. How much could he afford to pay? At maximum, to YSLA per year.