An Endowment Fund Is Set Up Today

An endowment fund is set up today.It provides payments of $1500 a year for 6-years (first payment one year from now) followed by $2000 a year thereafter forever.If the interest rate is j₁ = 6%,how much is needed to be deposited (invested) today? (Answer to nearest dollar)

A) $40,709
B) $38,889
C) $30,875
D) $29,545

Correct Answer:

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