Clarissa Wants to Fund a Growing Perpetuity That Will Pay

question 15

Multiple Choice

Clarissa wants to fund a growing perpetuity that will pay $10,000 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 9%, how much does she need to fund this perpetuity?

• A) $125,000.00
• B) $200,000.00
• C) $300,000.00
• D) $250,000.00

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