Determine the Amount of Money Required to Set Up a Charitable

question 43

Multiple Choice

Determine the amount of money required to set up a charitable endowment that pays the amount $P$ each year indefinitely for the annual interest rate compounded continuously. $P = \$ 12,000 , r = 6 \%$

• A)$210,000
• B)$200,000
• C)$220,000
• D)$240,000
• E)$230,000