An endowment fund is to be set up to finance a community

Reference no: EM13598180

An endowment fund is to be set up to finance a community resource center at an investment of $150,000 that would subsequently need $15,000 per year for operations and maintenance. In addition, it is expected that major periodic upgrades will cost $10,000 every four years. The community center is expected to operate forever. Find:

(a) The amount needed at time zero (or CW) for this project at an interest rate of 10%; and

(b) From a practical perspective what is the value of N that represents "forever"?

Reference no: EM13598180

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