Question

1) A philanthropist pledges to donate 20% of a fund each year. If the fund initially has $597,000.00, how much will the fund have after 6 years?

Answer 1

$195,345.60

Explanation:

We can calculate the amount of money remaining in the fund after 6 years by multiplying the initial amount by (1 - 0.2)^6. In this case,

(1 - 0.2)^6 = 0.32768

So the fund will have $597,000 * 0.32768 = $195,345.60 after 6 years.