You want to establish a trust fund that will provide $50,000 a year forever for your heirs.If the fund can earn a guaranteed rate of return of 4.5 percent,how much must you deposit in a solitary lump sum to establish this trust?
A) $1,333,333
B) $2,250,000
C) $1,250,000
D) $1,666,667
E) $1,111,111
Correct Answer:
Verified
Q63: Anna's grandmother established a trust and deposited
Q64: What is the future value of investing
Q65: Uptown Industries just decided to save $3,000
Q66: The preferred stock of ABC Co.offers a
Q67: Lucas invested $4,500 at 6.2 percent,compounded continuously.What
Q69: Lois is purchasing an annuity that will
Q70: Assume your employer will contribute $50 a
Q71: You are comparing two annuities with equal
Q72: Denise will receive annual payments of $10,000
Q73: Wilt has a consulting contract that calls
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents