Summer camp for kids with the average expenses

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Reference no: EM131048623

Pat Davis runs a summer camp for kids with the average expenses in each month as shown below. The camp uses a savings account for all funds that pays interest of 1.00% nominal annual rate with monthly compounding. Pat is getting older and wants to fund the camp in perpetuity by investing in a fund that earns 6% NAR compounded monthly. A single amount is to paid out of the fund each year to cover the year's expenses. How much would have to be in the fund?

Month Expenses Jan $5,000 Feb $5,000 Mar $5,000 Apr $10,000 May $10,000 Jun $25,000 Jul $40,000 Aug $35,000 Sep $10,000 Oct $5,000 Nov $5,000 Dec $5,000 s

Reference no: EM131048623

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