Martin Wants to Provide Money in His Will for an Annual

question 57

Multiple Choice

Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $4000 in the first year, and will grow by 7% per year, forever. If the interest rate is 9%, how much must Martin provide to fund this bequest?

• A) $100,000.00
• B) $160,000.00
• C) $200,000.00
• D) $240,000.00