Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of
Thousand dollars per year beginning next year. If the trust fund will earn an interest rate of 10% per year compounded continuously, find the amount that she must place in the trust fund now.
Hint: Use the formula
A) $350,000
B) $290,000
C) $380,000
D) $370,000
E) $400,000

Question

Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of ​  ​
Thousand dollars per year beginning next year. If the trust fund will earn an interest rate of 10% per year compounded continuously, find the amount that she must place in the trust fund now.
Hint: Use the formula 
A) $350,000 
B) $290,000 
C) $380,000 
D) $370,000 
E) $400,000

Quizplus · Accepted Answer

The Answer of Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of ​  ​
Thousand dollars per year beginning next year. If the trust fund will earn an interest rate of 10% per year compounded continuously, find the amount that she must place in the trust fund now.
Hint: Use the formula 
A) $350,000 
B) $290,000 
C) $380,000 
D) $370,000 
E) $400,000

Becky Wilkinson Wants to Establish a Trust Fund That Will