You Dream of Endowing a Chair in Finance at the Local

question 24

Multiple Choice

You dream of endowing a chair in finance at the local university that will provide a salary of $250,000 per year forever,with the first cash flow to be one year from today.If the university promises to invest the money at a rate of 4% per year,how much money must you give the university today to make your dream a reality?

• A)$3,000,000
• B)$6,250,000
• C)$8,857,143
• D)This question cannot be answered.

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Definitions:

Counterirritation

A method for managing pain or discomfort by intentionally inducing a second, less severe pain or irritation, to distract from the original pain.

Chronic Pain

A persistent pain that continues for weeks, months, or even years beyond the usual recovery period or occurs along with a chronic health condition.

Gate Control Theory

The proposal that pain sensations must pass through a neural “gate” in order to reach the brain and can be blocked at that gate by neurons that inhibit signals from the nociceptors.

Nocioception

The sensory nervous system's response to certain harmful or potentially harmful stimuli.