What amount can be paid at the end of every month, in perpetuity, from an endowment of $75,000 earning 8% compounded monthly?

Name: What amount can be paid at the end of every month, in perpetuity, from an endowment of $75,000 earning 8% compounded monthly?
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Question

Quizplus · Accepted Answer

The monthly interest rate is 8%/12 = 0.6667%. The perpetuity payment is calculated as the principal amount times the monthly interest rate: $75,000 * 0.006667 = $500.

What Amount Can Be Paid at the End of Every