Size of the initial endowment


Seaside Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $600,000 per year, and the program is expected to last five years. Assuming payments are made at the end of each year and the interest rate is 5 percent per year, what should be the size of the initial endowment?

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Finance Basics: Size of the initial endowment
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