Capitalized Costs

03/09/26

“How can we quantify the total amount needed to start a fund to generate enough interest to pay for a project?”

People can put down money to fund a project or scholarship for perpetuity. But how can we accomplish this? Well, what if we make an investment fund so large that the money made from interest will pay for annual costs? This is the principle behind Capitalized Costs, equal to the annual operating cost divided by the interest rate.

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