An Endowment Fund of $20,000 Is to Pay Out $R

question 13

Multiple Choice

An endowment fund of $20,000 is to pay out $R every year forever,with the first payment made exactly 2 years from now.If j₁ = 7%,what is R?

• A)$1308.41
• B)$1400.00
• C)$1498.00
• D)$1602.86

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