We want to donate a marble birdbath to the city park as a memorial to our cat, Fred, while he can…
We scantiness to donate a marble birdbath to the city boundary as a memorial to our cat, Fred, opportunity he can quiescent relish it. We so scantiness to set up a continual wariness investment to hide forthcoming expenses "forever." The initial absorb of the bath is $5000. Routine annual unconditional absorbs are $200 per year, but every fifth year the absorb .get be $500 to hide main cleaning and maintenance as polite as performance.
(a) What is the capitalized absorb of this scheme if the interest trounce is 8%?
(b) How considerable is the introduce merit of this scheme if it is to be demolished behind 75 years? The definite $500 cancelment in the 75th year get hide the year's unconditional absorb and the site reclamation.