A foundation was endowed with $15,000,000 in July 2014. In July 2018, $5,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense is in July 2019, and the first replacement expense in July 2023. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every fifth year forever?
A foundation was endowed with $15,000,000 in July 2014. In July 2018, $5,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense is in July 2019, and the first replacement expense in July 2023. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every fifth year forever?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A foundation was endowed with $15,000,000 in July 2014. In July 2018, $5,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense is in July 2019, and the first replacement expense in July 2023. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every fifth year forever?
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