Johnson C. Smith has asked you to start a marching band endowment to fund scholarships for inner city kids. This endowment will supply $100,000 in scholarship annually. There is no end date for this endowment and it is expected to grow 4% annually with an interest rate of 8%. In order to properly fulfill the objections set forth with this endowment how much funding is needed to kick start this endowment?

Answer rating: 100% (QA)

To determine the initial funding needed to kick start the endowment we can use the perp... View the full answer