ealthy business Mr. Tan wants to start a permanent fund for supporting research directed toward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of the next 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning in year 6. If the fund earns interest at a rate of 8% per year. How much money must be donated each time?   What would be the formula and the cashfl

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A wealthy business Mr. Tan wants to start a permanent fund for supporting research directed
toward sustainability. The donor Mr. Henry plans to give equal amounts of money for each of the
next 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning in
year 6. If the fund earns interest at a rate of 8% per year. How much money must be donated each
time?

 

What would be the formula and the cashflow diagram?

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