1. Business
  2. Economics
  3. maintenance money for an athletic complex has been sought mr...

Question: maintenance money for an athletic complex has been sought mr...

Question details

Maintenance money for an athletic complex has been sought. Mr.​ Kendall, Athletic​ Director, would like to solicit a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be $1.1 million each year for the first five​ years, ​$1.5 million each year for years 6 through​ 10, and $1.7 million each year after that.​ (The building has an indefinite service​ life.)If the money is placed in an account that will pay 8​% interest compounded​ annually, how large should the gift​ be?

The gift should be ​$______ million.​ (Round to two decimal​ places.)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution