At 2% interest per year, what was the initial endowment amount (PW) that would permit $1 million dollars in interest to be generated each year, forever?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...
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At 2% interest per year, what was the initial endowment amount (PW) that would permit $1 million

dollars in interest to be generated each year, forever?

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