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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A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

Betrayed

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Prototype

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Concept

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