You decide to give your school an endowment that will pay out $50 K per year forever,with a continuously compounded annual increase of 3%. Assuming that you canlock in an interest rate of 5%, gure out...


You decide to give your school an endowment that will pay out $50 K per year forever,with a continuously compounded annual increase of 3%. Assuming that you canlock in an interest rate of 5%, gure out how much this endowment would cost.What is the total value of this income stream?



Jun 04, 2022
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