RBS wishes to set up an endowment to fund research into the financial markets and is approaching wealthy investors for donations. RBS has determined that it needs S$500,000 per year to be able to carry out its research. It has also calculated that the costs of research will increase by 2.5% per annum. The research will commence from the end of Year 3 and if market interest rates are 5% how much does RBS need to raise from investors to set up the endowment?