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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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.
Numeric Response](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F189bd8a1-3ad7-4fb9-94fb-ce5c52effea7%2F1a8986e1-f4b2-4de0-a034-ec72176f6b1f%2Fkp14mnm_processed.jpeg&w=3840&q=75)
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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