Question: What amount can be paid at the end of every month, in perpetuity, from an endowment of $75,000 earning 8% compounded monthly? The Willie P.

What amount can be paid at the end of every month, in perpetuity, from an endowment of $75,000 earning 8% compounded monthly?

The Willie P. Stanton Trust Fund is to pay, $5,000 at the end of every year to the student-athlete voted most deserving based on his or her dedication to the ideals of good citizenship. The Trust Fund earns 7.4% compounded semiannually. What is the present value of this perpetuity?

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