The University of XYZ Has a Goal to Increase Its

question 7

Multiple Choice

The University of XYZ has a goal to increase its endowment from the initial value of $100,000,000, to $150,000,000 over 4 years. If the interest rate earned by the endowment (after expenses) is 5% each year (compounded continuously) , and the contributions become available continuously and at a constant rate, how much will they actually have to collect from contributors over those 4 years to meet their goal?

• A) $6,291,639
• B) $40,535,078
• C) $1,061,963,001
• D) $25,166,556

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Definitions:

Professional Courtesy

The practice of providing services at a reduced cost or without charge to fellow professionals, colleagues, or their family members.

Identification

The process of recognizing or establishing the identity of a person or thing.

Office Manager

An individual responsible for ensuring the smooth operation of an office, including administrative, financial, and staff management tasks.

Itemized Accounting

A detailed accounting method where each transaction is individually listed.