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  3. a man has $25,000 available to set up annuities. c

A man has $25,000 available to set up annuities. Charity A is to receive $X...

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Accounting

A man has $25,000 available to set up annuities. Charity A is to receive $X a year at the end of every year for 20 years with the first payment exactly one year from today, and Charity B is to receive $Y at the end of every year in perpetuity with the first payment exactly one year after Charity A receives its last payment. All interest is 8% compounded semi-annually.

(c) Suppose the man decides to divide the $25,000 equally between the two charities. Find the values of X and Y.

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