Question

project. 2. Chemical Industries in and around La Grants to Professors, where the grant her further research in the area of engineering. The to 4% interest, how much total funds should pay for these grants forever. ** Found Lake Charles provide Endowed Professorship (EP) the grant helps McNeese to build new or upgrade labs to eering. The total EP grant is $150,000 per year. At uld have been established by the Industries to ant to

Answer 1

Present worth of a perpetual series = A / i

Here A = 150000, I = 4% = 0.04

Present value = 150000 / 0.04 = 3750000