Multiple Choice
A generous benefactor to the local university plans to make a one-time endowment which would provide the university with $150,000 per year into perpetuity.The rate of interest is expected to be 5 percent for all future time periods.How large must the endowment be?
A) $300,000
B) $3,000,000.
C) $750,000.
D) $1,428,571.
Correct Answer:
Verified
Correct Answer:
Verified
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