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GuDViN [60]
2 years ago
3

A wealthy art collector has decided to endow her favorite art museum by establishing funds for an endowment which would provide

the museum with $1,000,000 per year for acquisitions into perpetuity. The art collector will give the endowment upon her fiftieth birthday 10 years from today. She plans to accumulate the endowment by making annual end-of-year deposits into an account. The rate of interest is expected to be 6% in all future periods. How much must the art collector deposit each year to accumulate to the required amount?
A. $1,575,333.
B. $736,000.
C. $943,396.
D. $1,264,466.
E. $2,264,466
Business
1 answer:
Novay_Z [31]2 years ago
7 0

Answer:

Given:

Annuity = $1,000,000

Rate of interest = 6%

First, we'll equate present value of this endowment:

Present \:Value = \frac{Annuity}{Rate}

=\frac{1000000}{0.06}

= $16,666,666.67

We will further compute the required annual deposit:

Annuity \:payment = \frac{rate(Present\: value)}{1- (1+r)^{n} }

= \frac{0.06(16666666)}{1- (1+0.06)^{10} }

= $1,264,465.97

<u><em>Therefore the correct option is (d.) </em></u>

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Answer: phase exit criteria is firmly establish

Explanation:

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Process Breakdown Structure can provide a reasonable alternative to a work breakdown structure for an extensive development project if the phase exit criteria is firmly establish.

6 0
2 years ago
Which of the following statements provides a summary of cash receipts and cash payments for a specific period of time such as a
AleksAgata [21]

Answer:

Option B                              

Explanation:

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3 0
2 years ago
Miles Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $2700000 $
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Answer:

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Explanation:

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As it is given that total sales of June is $2,970,000

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8 0
2 years ago
Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity supplied rises from 8,000 units to 10,000 unit
arsen [322]

Answer:

1.      1.22

Explanation:

P = Price of money clip

S = Supply of money clip

P1 = 0.75

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2 years ago
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Umnica [9.8K]

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