A Wealthy Benefactor Just Donated Some Money to the Local

question 360

Multiple Choice

A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy students. The first scholarships will be granted one year from now
For a total of $50,000. Annually thereafter the scholarship amount will be increased by 5% to help
Offset the effects of inflation. The scholarship fund will last indefinitely. What is the value of this gift
Today at a discount rate of 7.5%?

• A) $1,500,000
• B) $1,666,667
• C) $1,750,000
• D) $1,885,000
• E) $2,000,000

---

Definitions:

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Ganglion Cell Axons

The long, threadlike part of a ganglion cell in the retina that transmits visual information from the eye to the brain.

Bipolar Cell Dendrites

Extensions of bipolar cells in the retina that receive synaptic inputs from photoreceptors, playing a crucial role in visual processing.

Trichromatic Theory

A theory of color vision that proposes three types of color receptor cells in the eye, each sensitive to red, green, or blue light.