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:

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A setting on mobile phones and other devices that makes the device shake to notify the user of an incoming call or message, without emitting sound.

Primacy Effect

A psychological principle that items or information presented first are remembered better than those appearing later.

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Clothing specifically designed and worn for work, often reflecting the professional image or standards of a particular occupation.

Primacy Effect

The tendency to remember information from the beginning of a list or sequence better than information that comes later.