A Generous Benefactor to a Local Ballet Plans to Make

question 19

Multiple Choice

A generous benefactor to a local ballet plans to make a one-time endowment that would provide the ballet 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:

Misperceptions

False beliefs or understandings that occur when a situation is not correctly interpreted.

Perceived High-risk Drinking

The personal recognition or belief that one's consumption of alcohol is at a level that significantly increases the risk of harm to oneself or others.

Alcohol-related Injuries

Physical harm or damage that occurs as a direct or indirect result of alcohol consumption.

Piercing

Piercing, often related to "piercing the corporate veil," refers to the legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders or directors.