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.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Perpetuity Trust 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.
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Transcribed Image Text:ces - Perpetuity Trust 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. Numeric Response
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