Microsoft Word - Assignment.docx

In 30 years, you plan to set up a fellowship fund for Carleton university that pays out $100,000/year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much do you need to save each year (starting this year) assuming you can get a semi-annually compounded return of 10% per annum on your savings for the next 30 years?