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butalik [34]
3 years ago
6

Your grandparents would like to establish a trust fund that will pay you and your heirs $225,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 4.4 percent, how much must your grandparents deposit today?
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer:

They must deposit $5,113,636.36.

Explanation:

Giving the following information:

Cash flow= $225,000

Interest rate= 4.4 percent

To determine the amount to be deposited today, we need to use the perpetual annuity formula:

PV= Cf/i

Cf= cash flow

PV= 225,000/0.044

PV= $5,113,636.36

They must deposit $5,113,636.36.

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How will an increase in labor productivity affect equilibrium in the labor market?
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We can actually infer here that an increase in labor productivity will affect equilibrium in the labor market in the following way: The demand for labor will increase and the equilibrium wage and quantity of labour will increase.

<h3>What is equilibrium?</h3>

Equilibrium refers to the state whereby opposing things are balanced in order to achieve a desired outcome.

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Learn more about equilibrium on brainly.com/question/517289

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2 years ago
Mofro's Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year,
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The net income is the income that is generated when we deduct all expenses incurred from all revenues generated that is reflected on the income statement  

In mathematically,  

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3 0
4 years ago
Which of the three limitations of the Payback Rule can be overcome with a modification to it? Gives equal weight to all cash flo
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Answer:

Gives equal weight to all cash flows arriving before the cutoff 

Explanation:

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I hope my answer helps you

7 0
3 years ago
Read 2 more answers
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