A generous benefactor to the local ballet plans to make a one-time endowment which would provide the ballet 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) $750,000
B) $3,000,000
C) $300,000
D) $1,428,571

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The Answer of A generous benefactor to the local ballet plans to make a one-time endowment which would provide the ballet 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) $750,000
B) $3,000,000
C) $300,000
D) $1,428,571

A Generous Benefactor to the Local Ballet Plans to Make