Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years. Shannon wants to match Melissa's gift, but he wants to make a lump-sum contribution. If the current interest rate is 4.5% compounded annually, how much should Shannon contribute to equal Melissa's gift? (Round your answer to the nearest cent.)
Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years. Shannon wants to match Melissa's gift, but he wants to make a lump-sum contribution. If the current interest rate is 4.5% compounded annually, how much should Shannon contribute to equal Melissa's gift? (Round your answer to the nearest cent.)
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 58P
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Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years. Shannon wants to match Melissa's gift, but he wants to make a lump-sum contribution. If the current interest rate is 4.5% compounded annually, how much should Shannon contribute to equal Melissa's gift? (Round your answer to the nearest cent.)
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