SOLUTION: An alumnus wants to set up a trust (which earns 9% interest compounded semiannually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now

SOLUTION: An alumnus wants to set up a trust (which earns 9% interest compounded semiannually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now

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Question 253063: An alumnus wants to set up a trust (which earns 9% interest compounded semiannually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now, for six years. How much should be deposited in the trust?
Answer by hokies(65) (Show Source): You can put this solution on YOUR website!
(.09/2)*x = 10000
x = 10000*2/.09
x = $222222
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