Interest compounding based problem
Problem:
An alumnus wants to set up a trust (which earns 9% interest compounded semi-annually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now, for six years. How much should be deposited in the trust?
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Suppose that the riskfree interest rates in Australia and Japan are 6% p.a. and 2% p.a., respectively.
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An alumnus wants to set up a trust to provide a grant to his alma mater of $10,000 every six months, beginning 6 months from now, for 6years.
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