A Company Has Set Aside $10,000 as an Endowment in Order

question 6

Multiple Choice

A company has set aside $10,000 as an endowment in order to pay a cash award of $R every month to the "employee of the month" forever.If the first award is paid one month from now and the company can earn j₁₂ = 8.4% for the first 24 months and j₁₂ = 6% thereafter,what is R?

• A)$45.04
• B)$50.14
• C)$52.30
• D)$70.00

---

Definitions:

Chronic Stress

Persistent stress that continues over an extended period, often leading to significant health and psychological problems.

Hypertension

A medical condition characterized by high blood pressure, which can increase the risk of heart disease and stroke.

Diabetes

A chronic medical condition in which the body's ability to produce or respond to the hormone insulin is impaired, resulting in abnormal metabolism of carbohydrates and elevated levels of glucose in the blood and urine.

Personal Issues

Problems or challenges of a private nature that an individual may face in their personal life.