This is the equivalent problem as an amortization problem.
Given:
Annual payout, A = 35000
Interest, i = 4% per annum
number of periods, n = 15
Need present value.
[tex]P=\frac{A*((1+i)^n-1)}{i*(1+i)^n}[/tex]
[tex]P=\frac{35000*((1+.04)^{15}-1)}{.04*(1+.04)^{15}}[/tex]
=389143.56 to the nearest cent.
