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The Following Questions Refer to the Excerpt Below

question 52

Multiple Choice

The following questions refer to the excerpt below.
Jany 31/89
5 West Fifty-First Street,New York
My Dear Mr.Hitchcock
Yours rec'd - We must begin at once if Hall is to be ready for next winter.
Please let it be understood between us that if upon my return from the South say February 15th you have not succeeded that we consider the idea given up.We have property in view & quite ready to go on & build the Hall Capital all ready-although we will wait on you until Feby 15??.
If we build it will be much farther up town-not below 56th.Would not build upon Madison Square if we have to invest beyond the last 50,000 ft I agreed to take [illegible].Perhaps if your people leased us ground & agreed that our investment for Hall should bear [crossed out: up to illegible] interest upon cost and first net receipts,before ground rent was payable We might consider it-in that case you would have to clear a part from Mortgage & lease to us: but [illegible] increase your investment.
Yours,Andrew Carnegie
Andrew Carnegie to Hiram Hitchcock on the construction of a new philanthropic venture,
January 31,1889
-Which of the following statements is true concerning how Carnegie believed he should spend his fortune?

Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Bond

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Rule Of 70

The Rule of 70 is a calculation method used to estimate the number of years required for an investment or the economy's GDP to double, based on a constant annual growth rate.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a set period.