A generous alum would like to establish an endowment that would sponsor a student organization's conferences in perpetuity. A one-time cost of $550,000 must be paid today to purchase supplies for the...

A generous alum would like to establish an endowment that would sponsor a student organization's conferences in perpetuity. A one-time cost of $550,000 must be paid today to purchase supplies for the conference. The conference is held once every four years and costs $120,000. The alum's gift is invested in an account that earns 2.5% annually. How much would the alum need to place in the endowment to be able to sponsor the student organization's conferences?