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Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 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 7 percent per year, what should be the size of the initial endowment?

Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 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 7 percent per year, what should be the size of the initial endowment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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32. Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 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 7 percent per year, what should be the size of the initial endowment? 33. In 2010, James County Hospital's total patient revenues were $30 million. In 2019, patient
Transcribed Image Text:32. Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 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 7 percent per year, what should be the size of the initial endowment? 33. In 2010, James County Hospital's total patient revenues were $30 million. In 2019, patient
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