Donor plans to give equal amounts of money

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Reference no: EM13862035

A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per year can be withdrawn each year forever, beginning in year six. If the fund earns interest at a rate of 8% per year, how much money must be donated during each of years 0 through 5?

Reference no: EM13862035

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