Clarissa Wants to Fund a Growing Perpetuity That Will Pay

question 37

Multiple Choice

Clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum,starting next year.She wants the annual amount paid to the museum to grow by 5% per year.Given that the interest rate is 8%,how much does she need to fund this perpetuity?

• A)$62,500.00
• B)$102,112.33
• C)$143,445.65
• D)$166,666.67
• E)$100,000.00

---

Definitions:

Antianxiety Drug

A type of medication used to reduce symptoms of anxiety and panic attacks.

Increased Anxiety

A state where an individual experiences heightened levels of worry, nervousness, or fear over a period.

Difficulty Sleeping

A common condition where an individual has trouble falling or staying asleep, which can affect overall health and quality of life.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from prolonged use of antipsychotic medication.