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A university was endowed with $19,150,000 after the day of giving in July 2009. In July 2013, $6,750,000 is expected for constructing new research facilities,
A university was endowed with $19,150,000 after the day of giving in July 2009. In July 2013, $6,750,000 is expected for constructing new research facilities, and it was decided to provide $680,000 at the end of each year forever to cover operating costs. The first operating cost is in July 2014, and the first replacement expense in July 2013. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every 6th year forever? Round to the nearest integer. (Hint: Draw a cash-flow diagram first.) A university was endowed with $19,150,000 after the day of giving in July 2009. In July 2013, $6,750,000 is expected for constructing new research facilities, and it was decided to provide $680,000 at the end of each year forever to cover operating costs. The first operating cost is in July 2014, and the first replacement expense in July 2013. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every 6th year forever? Round to the nearest integer. (Hint: Draw a cash-flow diagram first.)
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