Considering replacing its swimming pool with new facility

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A community is considering replacing its swimming pool with a new facility. The total cost of the pool was $ 1.2 million when it was built in 2005. In 2005, the community got a donation of worth $1.2 million. Currently, the community is considering building the new facility in the year of 2060. If the inflation rate is 6% per year from 2005 to 2060. In 2005, the community invested the donation at a market interest rate of 8% per year. Define i, i′, f and actual dollar. Determine how many actual dollars in the 2060 will the gift be worth?

Reference no: EM131925261

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