Your rich uncle just celebrated his 35^(th) birthday and wants to provide SHSU an endowment of one million per year (forever) starting his 45^(th) birthday (10 years from today). He plans to set aside that money by putting it into a special account that pays 10% starting on his 36^(th) birthday through his 44^(th) birthday. How much must he set aside each year?
Your rich uncle just celebrated his 35^(th) birthday and wants to provide SHSU an endowment of one million per year (forever) starting his 45^(th) birthday (10 years from today). He plans to set aside that money by putting it into a special account that pays 10% starting on his 36^(th) birthday through his 44^(th) birthday. How much must he set aside each year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Your rich uncle just celebrated his 35^(th) birthday and wants to provide SHSU an endowment of one million per year (forever) starting his 45^(th) birthday (10 years from today). He plans to set aside that money by putting it into a special account that pays 10% starting on his 36^(th) birthday through his 44^(th) birthday. How much must he set aside each year?
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