A person plans to make a one-time endowment that would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be ____
$300,000, $3,000,000, $750,000, or $1,428,571
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The expert provides a large endowment for the ballets. The rate of interest which is expected is examined. You will find the answer to this puzzling question inside.