A graduating class of 100 engineers wants to present a gift of $500,000 to the university at their twenty-fifth class reunion. They set up a trust fund that earns 8 percent per year com- pounded. They plan to start with a small donation of G dollars to the fund on the first anniversary of their graduation and increase the amount by regular increments every year (2G, 3G,..., nG). If they put nothing into the fund at the time of their graduation. but continue increasing their donations by a regular amount, G, each year, find how much ( amounts to in terms of the donation each classmate should give on his or her first anniversary. (Ans. G= $7.41/yr/yr)

A graduating class of 100 engineers wants to present a gift of $500,000 to the university at their twenty-fifth class reunion. They set up a trust fund that earns 8 percent per year com- pounded. They plan to start with a small donation of G dollars to the fund on the first anniversary of their graduation and increase the amount by regular increments every year (2G, 3G,..., nG). If they put nothing into the fund at the time of their graduation. but continue increasing their donations by a regular amount, G, each year, find how much ( amounts to in terms of the donation each classmate should give on his or her first anniversary. (Ans. G= $7.41/yr/yr)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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