A Wealthy Inventor Has Decided to Endow Her Favorite Art

question 135

Multiple Choice

A wealthy inventor has decided to endow her favorite art museum by establishing funds for an endowment which would provide $1,000,000 per year for research.The scientist will fund the endowment upon her fiftieth birthday 10 years from today.She plans to accumulate the endowment by making annual end-of-year deposits into an account.The rate of interest is expected to be 6 percent in all future periods.How much must the scientist deposit each year to accumulate to the required amount?

• A)$1,575,333
• B)$736,000
• C)$1,264,446
• D)$943,396

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Definitions:

Land Improvements

Enhancements made to a parcel of land, such as fencing, lighting, and paving, that increase the property's value.

Landscaping

The process of making a yard or other piece of land more attractive by altering the existing design, adding ornamental features, and planting trees and shrubs.

New Business Location

The process or act of establishing a company's operations in a different geographical area, often to expand market reach or access new opportunities.

Land

Land refers to a parcel or tract of ground, including any natural resources over or under it, owned or used by a person or organization.