Use the following information to answer Questions bellow:
At the beginning of the current year, a donor gave the Fresno Rehabilitation Center, a private NFP organization, $100,000 in cash, with the provision that the cash be invested in income-producing securities. The center is to pay the donor all income generated on the investments for his remaining life. Income is defined as cash income and unrealized investment gains or losses. Upon his death, remaining resources become available to the center with no restrictions as to use. The center invested the $100,000 in securities earning cash dividend and interest income of $3,500 in the current year. The securities have a fair value of $102,000 at the end of the year. The donor's life expectancy is 10 years, and the annual discount rate is 5%. The present value of $1/year for 10 years, discounted at 5%, is 7.7217.
-The annuity payable, reported on the statement of net position for the current year-end, is

Question

Quizplus · Accepted Answer

The Answer of Use the following information to answer Questions bellow:
At the beginning of the current year, a donor gave the Fresno Rehabilitation Center, a private NFP organization, $100,000 in cash, with the provision that the cash be invested in income-producing securities. The center is to pay the donor all income generated on the investments for his remaining life. Income is defined as cash income and unrealized investment gains or losses. Upon his death, remaining resources become available to the center with no restrictions as to use. The center invested the $100,000 in securities earning cash dividend and interest income of $3,500 in the current year. The securities have a fair value of $102,000 at the end of the year. The donor's life expectancy is 10 years, and the annual discount rate is 5%. The present value of $1/year for 10 years, discounted at 5%, is 7.7217.
-The annuity payable, reported on the statement of net position for the current year-end, is

Use the Following Information to Answer Questions Bellow