Hi, I'm currently stuck and don't quite know how to start off this question.
The question is: In 8 years, a new library is being opened. Operating expenses are estimated to be $52,000, payable at the end of each month. If all funds earn 14.4% compounded monthly, how much money needs to be invested today, to be able to support the library in perpetuity?
I drew a timeline (My horrible timeline I just converted to paint, http://i.imgur.com/2Lp3Puf.png ) however I'm not sure what I would do first. I believe this question requires multiple parts but I'm not sure what exactly to do first.
I did N=12*1000=12000, I/Y=14.4, P/Y=12, C/Y=12, FV=0, PMT=52000, PV=X however the answer I get for PV is wrong so I think I have to do something that involves the 8 years but not sure what to do.