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'The Legacy' printed from http://nrich.maths.org/
|Your school has been left $£ 1 \; 000 \; 000$ in the
will of an ex-pupil ...
The pupil made some conditions on how the money should be invested
and used. These were:
- The money should have a lifetime of $50$ years.
- That the school benefits in some way (spends part of the
investment) every year.
You are asked to produce models of investment and expenditure based
on any balance being invested at a fixed interest rate (it is
suggested that you could start with a rate of $4 \%$). Your model
could also consider different inflation rates.
What model would you choose to ensure the best return for the
school over a period of $50$ years?
If you want some suggested
starting points for models you might like to look at