To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual” scholarship fund that will pay for MBA tuition and fees worth $210,000 per year. The fund’s first payment to ISU will be issued exactly 13 years from today. If the scholarship fund earns an annual return of 4.1 percent, how much must Mr. Vickers deposit today to establish it?

To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual” scholarship fund that will pay for MBA tuition and fees worth $210,000 per year. The fund’s first payment to ISU will be issued exactly 13 years from today. If the scholarship fund earns an annual return of 4.1 percent, how much must Mr. Vickers deposit today to establish it?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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