Beginning next year a foundation will support an annual semi

Beginning next year, a foundation will support an annual seminar on campus with the earings o a S200 000 gif it received this year. It is felt that 6% interest will be realized or the first 10 years, but that plans should be made to anticipate an interest rate of 4% after that time, what amount should be added to the foundation now to fund the seminar at the $20,000 level into infinity? Click the icon to view the interest factors for discrete compounding when ,-6% per year. More Info The amount of additional funds should be sthousand. (Round to the nearest whole number.) Compound Present Present Worth Factor (PIA, i,N) 0.9434 1.8334 2.6730 3.4651 42124 Capital Recovery Factor (A/P i, N) 1.0600 0.5454 0.3741 0.2886 0.2374 Compound Sinking Amount Factor (F/P i, N) 1.0600 1.1236 1.1910 1.2625 1.3382 Amount Fund Factor Worth Factor (P/F i, N) 0.9434 0.8900 0.8396 0.7921 0.7473 Factor FIA, I, N) (A/F, i, N) 1.0000 2.0600 3.1836 4.3746 5.6371 1.0000 0.4854 0.3141 0.2286 0.1774 1.4185 1.5036 1.5938 1.6895 1.7908 6.9753 8.3938 9.8975 11.4913 13.1808 0.1434 0.1191 0.1010 0.0870 0.0759 4.9173 0.7050 0.6651 0.6274 0.5919 0.5584 6.2098 6.8017 7.3601 0.2034 0.1791 0.1610 0.1470 0.1359 1.8983 2.0122 2.1329 0.5268 0.4970 0.4688 14.9716 16.8699 18.8821 0.0668 0.0593 0.0530 7.8869 8.3838 8.8527 0.1268 0.1193 0.1130 Enter your answer in the answer box and then click Check Answer. All parts showing

Solution

Present worth = $20000(P/A,6%,10) + (20000/0.04)(P/F,6%,10) 20000*7.3601 + 500000*0.5584 147202+279200 426402 The amount of additional funds should be (426402-200000) = $ 262402