How much maintenance will be paid every year by endowment

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Reference no: EM131608637

Dr. C, a renowned Figment Imaginary University (FIU) professor, wins the Florida Lotto. In appreciation for the great time he had at FIU, he decides to set up an endowment fund to maintain the elevators in the building. He wants the endowment to pay a fixed amount towards the maintenance every year. If the endowment is for $185, 485 and interest rates are expected to be 3% for the first 5 years, 4% for the next 5 years, and 7% thereafter, how much maintenance will be paid every year by the endowment?

Reference no: EM131608637

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