On a shopping trip, Sofia decided to buy a light blue coat that had a price tag of $79.95. When she brought the coat to the s
1 answer:
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Answer:
Endowment Must be $3,000,000 Large
Explanation:
The endowment can be calculated using the following formula:
Value=
In our case:
Given data:
Cash Flow =$150,000 per year
Rate if interest= 5%=0.05
Required:
How large must the endowment be?
Solution:
Endowment=
Endowment Must be $3,000,000 Large