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You have decided to make a one-time endowment to fund an annual SBGE graduation party, with a budget of $30,000 per party. Suppose SPUs endowment
You have decided to make a one-time endowment to fund an annual SBGE graduation party, with a budget of $30,000 per party. Suppose SPUs endowment managers on average generate a 10% return per year.
(A) If you would like to fund the annual party forever, how much would you need to donate today for the first party to take place in four years?
(B) If you would like to fund an annual party for four years, how much would you need to donate today for the first (surprise) party to be today?
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