Jose H. answered • 04/08/19

Former Corporate Wealth Management Advisor

If I'm reading the problem correctly, it sounds like this is a PV calculation for an annuity in perpetuity.

That equation is PV = A/R where A is the Annual Payment, and R is the rate.

Using that formula, the PV of the Endowment Fund would be $4,000,000.

Hope this helps.

-Jose