Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87

Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.92
Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
Your grandparents would like to establish a trust fund that would pay annual payments to you and your heirs of $100,000 a year forever. How much do your parents need to deposit into this trust fund today to achieve their goal if the fund can earn 6% interest?
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
Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?
Your parents would like to establish a trust fund that would pay annual payments to you and your heirs of $500,000 a year forever. How much do your parents need to deposit into this trust fund today to achieve their goal if the fund can earn 7% interest?
If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how much will she accumulate assuming she can earn 8% p.a. and the first contribution is made immediately? Select one: a. $858,020.78 b. $652,810.16 c. $90,000.00 d. $875,181.20
You would like to give your daughter $75,000 towards her college education 16 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? Group of answer choices $28,417.67 $18,388.19 $29,311.13 $21,891.79 $20,270.17
You deposit a lump sum P in a trust fund on the day your grandchild is born. The fund earns 7.25% interest compounded continuously. Find the amount P that will yield the given balance A on your grandchild's 20th birthday. (Round your answer to two decimal places.) A = $600,000 P = $
? You would like to have enough money saved to receive a $53,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8 percent. O -00 Multiple Choice $715,500 $1,060,000 $530,000
When you were born, your grandfather established a trust fund for you in the Cayman Islands The account has been eaming interest at the rate of 15% per year f this account will be worth $90,000 on your 23th birthday, how much did your grandfather deposit on the day you were born? Click the icon to view the interest and annuity table for discrete compounding when i 15% per year Choose the correct answer below. OA. $3,618 O B. $2.965 OC. $13,500 O D. $13,335 O E. $3,913 Click to select your answer.
You deposit a lump sum P in a trust fund on the day your child is born. The fund earns 6.5% interest compounded continuously. Find the amount P that will yield the given balance A on your child's 27th birthday. (Round your answer to the nearest cent.) A = $5,000,000 P = $