Chapter 6, Problem 61RE

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10th Edition

Ron Larson

ISBN: 9781305860919

Textbook Problem

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**Endowment** In Exercises 61 and 62, determine the amount of money required to set up a charitable endowment that pays the amount *P* each year indefinitely for the annual interest rate *r* compounded continuously.

To determine

**To calculate:** The charitable endowment amount that is set up to pay amount

Explanation

**Given Information:**

Provided information is,

Amount is

**Formula used:**

Present value of Perpetuity:

Here,

If on the interval

**Calculation:**

Consider the provided data,

Amount

The rate of annual interest,

Interest in decimal form will be,

Now, use the formula,

So, the amount needed to set up the charitable endowment will be,

Sect-6.1 P-1CPSect-6.1 P-2CPSect-6.1 P-3CPSect-6.1 P-4CPSect-6.1 P-5CPSect-6.1 P-6CPSect-6.1 P-7CPSect-6.1 P-1SWUSect-6.1 P-2SWUSect-6.1 P-3SWU

Sect-6.1 P-4SWUSect-6.1 P-5SWUSect-6.1 P-6SWUSect-6.1 P-7SWUSect-6.1 P-8SWUSect-6.1 P-9SWUSect-6.1 P-10SWUSect-6.1 P-1ESect-6.1 P-2ESect-6.1 P-3ESect-6.1 P-4ESect-6.1 P-5ESect-6.1 P-6ESect-6.1 P-7ESect-6.1 P-8ESect-6.1 P-9ESect-6.1 P-10ESect-6.1 P-11ESect-6.1 P-12ESect-6.1 P-13ESect-6.1 P-14ESect-6.1 P-15ESect-6.1 P-16ESect-6.1 P-17ESect-6.1 P-18ESect-6.1 P-19ESect-6.1 P-20ESect-6.1 P-21ESect-6.1 P-22ESect-6.1 P-23ESect-6.1 P-24ESect-6.1 P-25ESect-6.1 P-26ESect-6.1 P-27ESect-6.1 P-28ESect-6.1 P-29ESect-6.1 P-30ESect-6.1 P-31ESect-6.1 P-32ESect-6.1 P-33ESect-6.1 P-34ESect-6.1 P-35ESect-6.1 P-36ESect-6.1 P-37ESect-6.1 P-38ESect-6.1 P-39ESect-6.1 P-40ESect-6.1 P-41ESect-6.1 P-42ESect-6.1 P-43ESect-6.1 P-44ESect-6.1 P-45ESect-6.1 P-46ESect-6.1 P-47ESect-6.1 P-48ESect-6.1 P-49ESect-6.1 P-50ESect-6.1 P-51ESect-6.1 P-52ESect-6.1 P-53ESect-6.1 P-54ESect-6.1 P-55ESect-6.1 P-56ESect-6.1 P-57ESect-6.1 P-58ESect-6.1 P-59ESect-6.1 P-60ESect-6.1 P-61ESect-6.1 P-62ESect-6.1 P-63ESect-6.1 P-64ESect-6.1 P-65ESect-6.1 P-66ESect-6.1 P-67ESect-6.1 P-68ESect-6.1 P-69ESect-6.1 P-70ESect-6.1 P-71ESect-6.1 P-72ESect-6.1 P-73ESect-6.1 P-74ESect-6.1 P-75ESect-6.1 P-76ESect-6.1 P-77ESect-6.1 P-78ESect-6.1 P-79ESect-6.1 P-80ESect-6.1 P-81ESect-6.1 P-82ESect-6.2 P-1CPSect-6.2 P-2CPSect-6.2 P-3CPSect-6.2 P-4CPSect-6.2 P-5CPSect-6.2 P-6CPSect-6.2 P-1SWUSect-6.2 P-2SWUSect-6.2 P-3SWUSect-6.2 P-4SWUSect-6.2 P-5SWUSect-6.2 P-6SWUSect-6.2 P-1ESect-6.2 P-2ESect-6.2 P-3ESect-6.2 P-4ESect-6.2 P-5ESect-6.2 P-6ESect-6.2 P-7ESect-6.2 P-8ESect-6.2 P-9ESect-6.2 P-10ESect-6.2 P-11ESect-6.2 P-12ESect-6.2 P-13ESect-6.2 P-14ESect-6.2 P-15ESect-6.2 P-16ESect-6.2 P-17ESect-6.2 P-18ESect-6.2 P-19ESect-6.2 P-20ESect-6.2 P-21ESect-6.2 P-22ESect-6.2 P-23ESect-6.2 P-24ESect-6.2 P-25ESect-6.2 P-26ESect-6.2 P-27ESect-6.2 P-28ESect-6.2 P-29ESect-6.2 P-30ESect-6.2 P-31ESect-6.2 P-32ESect-6.2 P-33ESect-6.2 P-34ESect-6.2 P-35ESect-6.2 P-36ESect-6.2 P-37ESect-6.2 P-38ESect-6.2 P-39ESect-6.2 P-40ESect-6.2 P-41ESect-6.2 P-42ESect-6.2 P-43ESect-6.2 P-44ESect-6.2 P-45ESect-6.2 P-46ESect-6.2 P-47ESect-6.2 P-48ESect-6.2 P-49ESect-6.2 P-50ESect-6.2 P-51ESect-6.2 P-52ESect-6.2 P-53ESect-6.2 P-54ESect-6.2 P-55ESect-6.2 P-56ESect-6.2 P-57ESect-6.2 P-58ESect-6.2 P-59ESect-6.2 P-60ESect-6.2 P-61ESect-6.2 P-1QYSect-6.2 P-2QYSect-6.2 P-3QYSect-6.2 P-4QYSect-6.2 P-5QYSect-6.2 P-6QYSect-6.2 P-7QYSect-6.2 P-8QYSect-6.2 P-9QYSect-6.2 P-10QYSect-6.2 P-11QYSect-6.2 P-12QYSect-6.2 P-13QYSect-6.2 P-14QYSect-6.2 P-15QYSect-6.2 P-16QYSect-6.2 P-17QYSect-6.2 P-18QYSect-6.2 P-19QYSect-6.2 P-20QYSect-6.2 P-21QYSect-6.3 P-1CPSect-6.3 P-2CPSect-6.3 P-3CPSect-6.3 P-1SWUSect-6.3 P-2SWUSect-6.3 P-3SWUSect-6.3 P-4SWUSect-6.3 P-5SWUSect-6.3 P-6SWUSect-6.3 P-7SWUSect-6.3 P-8SWUSect-6.3 P-9SWUSect-6.3 P-10SWUSect-6.3 P-1ESect-6.3 P-2ESect-6.3 P-3ESect-6.3 P-4ESect-6.3 P-5ESect-6.3 P-6ESect-6.3 P-7ESect-6.3 P-8ESect-6.3 P-9ESect-6.3 P-10ESect-6.3 P-11ESect-6.3 P-12ESect-6.3 P-13ESect-6.3 P-14ESect-6.3 P-15ESect-6.3 P-16ESect-6.3 P-17ESect-6.3 P-18ESect-6.3 P-19ESect-6.3 P-20ESect-6.3 P-31ESect-6.3 P-32ESect-6.3 P-33ESect-6.3 P-34ESect-6.3 P-35ESect-6.3 P-36ESect-6.3 P-37ESect-6.3 P-38ESect-6.3 P-39ESect-6.3 P-40ESect-6.3 P-43ESect-6.3 P-44ESect-6.3 P-45ESect-6.3 P-46ESect-6.3 P-47ESect-6.3 P-48ESect-6.4 P-1CPSect-6.4 P-2CPSect-6.4 P-3CPSect-6.4 P-4CPSect-6.4 P-5CPSect-6.4 P-1SWUSect-6.4 P-2SWUSect-6.4 P-3SWUSect-6.4 P-4SWUSect-6.4 P-5SWUSect-6.4 P-6SWUSect-6.4 P-7SWUSect-6.4 P-8SWUSect-6.4 P-9SWUSect-6.4 P-10SWUSect-6.4 P-1ESect-6.4 P-2ESect-6.4 P-3ESect-6.4 P-4ESect-6.4 P-5ESect-6.4 P-6ESect-6.4 P-7ESect-6.4 P-8ESect-6.4 P-9ESect-6.4 P-10ESect-6.4 P-11ESect-6.4 P-12ESect-6.4 P-13ESect-6.4 P-14ESect-6.4 P-15ESect-6.4 P-16ESect-6.4 P-17ESect-6.4 P-18ESect-6.4 P-19ESect-6.4 P-20ESect-6.4 P-21ESect-6.4 P-22ESect-6.4 P-23ESect-6.4 P-24ESect-6.4 P-25ESect-6.4 P-26ESect-6.4 P-27ESect-6.4 P-28ESect-6.4 P-29ESect-6.4 P-30ESect-6.4 P-31ESect-6.4 P-32ESect-6.4 P-33ESect-6.4 P-34ESect-6.4 P-35ESect-6.4 P-36ESect-6.4 P-37ESect-6.4 P-38ESect-6.4 P-39ESect-6.4 P-40ESect-6.4 P-41ESect-6.4 P-42ECh-6 P-1RECh-6 P-2RECh-6 P-3RECh-6 P-4RECh-6 P-5RECh-6 P-6RECh-6 P-7RECh-6 P-8RECh-6 P-9RECh-6 P-10RECh-6 P-11RECh-6 P-12RECh-6 P-13RECh-6 P-14RECh-6 P-15RECh-6 P-16RECh-6 P-17RECh-6 P-18RECh-6 P-19RECh-6 P-20RECh-6 P-21RECh-6 P-22RECh-6 P-23RECh-6 P-24RECh-6 P-25RECh-6 P-26RECh-6 P-27RECh-6 P-28RECh-6 P-29RECh-6 P-30RECh-6 P-31RECh-6 P-32RECh-6 P-33RECh-6 P-34RECh-6 P-35RECh-6 P-36RECh-6 P-37RECh-6 P-38RECh-6 P-39RECh-6 P-40RECh-6 P-41RECh-6 P-42RECh-6 P-43RECh-6 P-44RECh-6 P-45RECh-6 P-46RECh-6 P-47RECh-6 P-48RECh-6 P-49RECh-6 P-50RECh-6 P-51RECh-6 P-52RECh-6 P-53RECh-6 P-54RECh-6 P-55RECh-6 P-56RECh-6 P-57RECh-6 P-58RECh-6 P-59RECh-6 P-60RECh-6 P-61RECh-6 P-62RECh-6 P-63RECh-6 P-64RECh-6 P-1TYSCh-6 P-2TYSCh-6 P-3TYSCh-6 P-4TYSCh-6 P-5TYSCh-6 P-6TYSCh-6 P-7TYSCh-6 P-8TYSCh-6 P-9TYSCh-6 P-10TYSCh-6 P-11TYSCh-6 P-12TYSCh-6 P-13TYSCh-6 P-14TYSCh-6 P-15TYSCh-6 P-16TYSCh-6 P-17TYSCh-6 P-18TYS

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