What amount should be added to the initial endowment

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A $200,000 gift has been received by Harvard to support in perpetuity an annual professional ethics lecture series from its earnings. The administration says they should expect to earn 6% for the first 10 years, but being conservative, they should anticipate earning 4% thereafter for perpetuity. What amount should be added to the initial endowment today to ensure a consistent $20,000/year funding for the lecture series for perpetuity?

Reference no: EM13223708

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