You want to establish a trust fund that will provide $330,000 a year forever for your heirs. If the fund can earn a guaranteed rate of return of 15 percent, how much must you deposit in a lump sum to establish this trust? This will be the only deposit you make to the fund.
You want to establish a trust fund that will provide $330,000 a year forever for your heirs. If the fund can earn a guaranteed rate of return of 15 percent, how much must you deposit in a lump sum to establish this trust? This will be the only deposit you make to the fund.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 22E
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