option C to persuade, just took the test
Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
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False, a credit card doesn’t deduct from your checking account nor is it linked to your checking account only a debit card deducts from your checking account.
Dude, you've got your priorities all sorted out ahahah
