Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training program. The expenses are $2,500,000 per year, and the program needs to be endowed for 50 years. Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the initial size of the endowment?
Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training program. The expenses are $2,500,000 per year, and the program needs to be endowed for 50 years. Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the initial size of the endowment?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 23E
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Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training program. The expenses are $2,500,000 per year, and the program needs to be endowed for 50 years. Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the initial size of the endowment?
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