Michigan Tech received a donation of $436,133 to be used for scholarship funds. The money will be deposited today into a fund that earns 7% each year, compounded monthly. How much money can Michigan Tech withdraw at the end of each year to give out in scholarship money for the following calendar year if they want this fund to last forever? (note: round your answer to two decimal places; do not include spaces or dollar signs.)

Michigan Tech received a donation of $436,133 to be used for scholarship funds. The money will be deposited today into a fund that earns 7% each year, compounded monthly. How much money can Michigan Tech withdraw at the end of each year to give out in scholarship money for the following calendar year if they want this fund to last forever? (note: round your answer to two decimal places; do not include spaces or dollar signs.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Michigan Tech received a donation of
$436,133 to be used for scholarship
funds. The money will be deposited today
into a fund that earns 7% each year,
compounded monthly. How much money
can Michigan Tech withdraw at the end of
each year to give out in scholarship
money for the following calendar year if
they want this fund to last forever? (note:
round your answer to two decimal
places; do not include spaces or
dollar signs.)

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