Question

A person desires to create an endowment fund to provide for a prize of $300 every year. If the fund can be invested at 10% per annum compound interest, find the amount of the endowment?

Answer 1

Answer:

this involves perpetual annuity. because endowment fund is always created per year

Step-by-step explanation:

P=a÷i

a=$300

I=10/100=0.1

P=300/0.1=$3000

Answer 2

Answer:

V = amount/rate

V= 300/10%

V=3000

Step-by-step explanation: