In June 2016, your parent pledge to donate $1.5 million to Marist college you attend...
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In June 2016, your parent pledge to donate $1.5 million to Marist college you attend (payment of $.5 million will be made at the end of each of your remaining years at the school until your expected graduation in June 2019 ) The college applies a discount rate of 3 percent. At that rate, the present value of $1 for three periods is $2.82861. How much pledge should Marist College recognize at June 2016? Assume that the college uses separate funds to track restricted resources.
$1.5 Million with donor restricted fund
$500,000 without donor restricted fund
$1,414,305 with donor restricted fund
$1,414,305 without donor restricted fund
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