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dimulka [17.4K]
1 year ago
5

your grandparents would like to establish a trust fund that will pay you and your heirs $115,000 per year forever with the first

payment one year from today. if the trust fund earns an annual return of 2.2 percent, how much must your grandparents deposit today?
Business
1 answer:
Mademuasel [1]1 year ago
4 0

They must deposit $5,227,272.73 if the trust fund will pay $115,000 per year and the trust fund earns an annual return of 2.2%.

The amount to be deposited today can be considered as the present value that can be described as the current figure of a future sum of money or stream of cash flows provided a specified rate of return.

The amount to be deposited or in other words, the present value can be calculated by using the formula for present value;

PV = Annual cash flow / Interest rate

Substituting the given values of annual cash flow and interest rate in this formula;

PV = $115,000 / 0.022

PV = $5,227,272.73

Therefore, the amount that has to be deposited today by them is calculated to be $5,227,272.73

To learn more about the present value; click here:

brainly.com/question/20813161

#SPJ4

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Eva, the owner of eva's second time around wedding dresses, currently has five dresses to be altered, shown in the order in whic
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It's easier to do the next step using real numbers. For example, if it's 11am now and W is due in 1 hour, then W is due at noon. If Y is due in 3 hours, then Y is due at 2pm, etc. Then, you need to use the processing time to see how long it will take to make the dresses. For example, since W takes one hour to process, it will be done by noon, its due date. 

This means that W and Y will be altered on time, V will be 1 hour late, Z will be 4 hours late, and X will be 6 hours late. To find the average tardiness, add these extra hours (1+4+6) = 11, and divide by the total number of dresses (even the ones that weren't late) 5: 11/5 = 2.2 hours.
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Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
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3 years ago
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Answer:

a. a majority of both shareholders and directors must approve.

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