Question

If mr. silva decides to donate the balance of the investment account (at the end of year five) to youth soccer league association(ysla), starting year 6 and going through infinity, how much could he afford to pay, at maximum, to ysla per year.

Answer 1

so i have an undisclosed amount of candy with me and i decide one day to give it to you, only catch is that i will give it to you in instalments or piece by piece starting from tomorrow all thru until infinity (or when either of us dies). now i don't have an infinite supply of candy but I'm going to give this to you in parts for an infinite amount of time. from this we know that anything finite divided by infinity is zero. so unfortunately you'll be getting negligible amounts of candy just like ysla will get negligible sums of money from mr. sneaky silva.

if mr. silva keeps the balance in his account and it accrues interest over time, EVEN then it doesn't beat annuity for an infinite amount of time. so max is 0.