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Problem II: A benefactor has donated $1,000,000 to a local charity. The charity plans to invest this donation in an account earning 10% compounded annually.
Problem II: A benefactor has donated $1,000,000 to a local charity. The charity plans to invest this donation in an account earning 10% compounded annually. A. If the charity does not make any withdrawals from its investment account, what will be its future value of this investment in five years? (reminder: set your calculator to 5 decimal places) Answer: $ By comparing your answer in "A" to the amount originally invested, calculate the total amount of interest the donated amount earned over five years. B. Total interest earned: $ C. Which year would have the most interest earned and why? D. If the charity would like the future value of the donation to equal S 1,842,440 in five years, what interest rate compounded annually will it need to earn? Answer: 0
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