Chattanooga and the State

Chattanooga and the State

Chattanooga and the State of Tennessee Development Board wants to build an incubator on the east side. The initial investment will be $325,000 and the endowment principal will earn 9% per year.The operating and maintenance cost for the incubator is eastimated to be $53,000 each year, and $42,000 to upgrade the equipment at the end of every tenth year. What is the amount of the endowment required to establish the center and supply the funds to maintain this center forever? (ANS. $XXX,XXX) (show your work)

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