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Q3. A local community college decided to establish an endowment fund to cover its annual...

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Q3. A local community college decided to establish an endowment fund to cover its annual cost of operations for perpetual life. The college has an annual operating cost of $2.5 million per year. They expect the annual cost to increase after the first 10 years to reach $3 million per year. Assume that the college expects major maintenance due in 7 years for $5 million. How much money needed to be invested in the fund to cover annual operating expenses and the upgrade? Consider the interest rate to be 10% per year

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