A Generous Benefactor to the Local University Plans to Make

question 120

Multiple Choice

A generous benefactor to the local university plans to make a one-time endowment which would provide the university with $150,000 per year into perpetuity.The rate of interest is expected to be 5 percent for all future time periods.How large must the endowment be?

• A)$300,000
• B)$3,000,000.
• C)$750,000.
• D)$1,428,571.

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Definitions:

Control Group

A group in an experiment or study that does not receive treatment, used as a benchmark to measure the effects of the treatment.

Natural Experiments

Observational studies where the conditions are naturally occurring rather than being controlled or manipulated by the researcher, used to infer causality.

Random Experiments

Procedures or trials that yield different outcomes, each with a specific probability, even when repeated under the same conditions.

Vaccinated People

Individuals who have received vaccinations, which are medical treatments that provide immunity against one or several diseases.