In June 2016, your parent pledge to donate $1.5 million to Queens college you attend (payment of $.5 million will be made at the end of each of your remaining years at the school until your expected graduation in June 2019 )

The college applies a discount rate of 3 percent. At that rate, the present value of $1 for three periods is $2.82861.

How much pledge should Queens College recognize at June 2016? Assume that the college uses separate funds to track restricted resources.

		$1.5 Million with donor restricted fund
		$500,000 without donor restricted fund
		$1,414,305 with donor restricted fund
		$1,414,305 without donor restricted fund