Two graduating college roommates, Sandy and Rusty, pledge to make donations to their alma mater over a ten year period. Sandy prefers plans that are slow and steady, so she plans to donate $300 annually for a decade. Rusty prefers to do things right away, so she plans to make an equivalent donation immediately. How much money should Rusty donate immediately so to make a donation that is equivalent to what Sandy will donate over ten years? Presume the college's endowment fund conservatively earns 6% compounded annually, and that is where Sandy's stream of donations will be deposited. [COMMENTS & HINTS: What is the present value of this annuity? Round off the answer to the nearest whole penny.]
Orignal From: How can I determine the present value of the annuity?
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