Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 30

A wealthy businessman wants to start a permanent fund for supporting research directed toward sus- tainability. The donor plans to give equal amounts of money for each of the next 5 years, plus one now (i.e., six donations) so that $100,000 per year can be withdrawn each year forever, beginning in year 6. If the fund earns interest at a rate of 8% per year, how much money must be donated each time