Problem 3 [10 points] You are head of the Carey Family Endowment for commerce. You have decided to fund a business school in the Phoenix area in perpetuity. The first payment of $1,500,000 will occur 5 years from today. After that, you will donate every 5 years increasing at 3% with each payment. If the interest rate is 7.0% per year, what is the present value of your gift