A Generous Philanthropist Plans to Make a One-Time Endowment to a Renowned

question 4

Multiple Choice

A generous philanthropist plans to make a one-time endowment to a renowned heart research center which would provide the facility with $250,000 per year into perpetuity. The rate of interest is expected to be 8 percent for all future time periods. How large must the endowment be?

• A) $2,314,814
• B) $2,000,000
• C) $3,125,000
• D) $3,000,000

---

Definitions:

Machine

A device constructed to perform specific tasks, often powered by electricity or mechanical force, ranging from simple tools like levers to complex computers.

Premature Ventricular Contractions

Abnormal, extra heartbeats that originate in one of the ventricles of the heart, disrupting the regular heart rhythm.

Hypertension

Elevated blood pressure.

Coronary Artery Disease

A condition characterized by the narrowing of the coronary arteries due to the buildup of plaque, which can lead to reduced blood flow to the heart.