Entertainer's Aid Plans Five Annual Colossal Concerts, Each in a Different

Multiple Choice

Entertainer's Aid plans five annual colossal concerts, each in a different nation's capital. The concerts will raise funds for an endowment which would provide the World Wide Hunger Fund with $3,000,000 per year into perpetuity. The endowment will be given at the end of the sixth year. The rate of interest is expected to be 9 percent in all future periods. How much must Entertainer's Aid deposit each year to accumulate to the required amount?

A) $5,569,500
B) $8,569,000
C) $1,830,300
D) $3,333,300