1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zina [86]
2 years ago
5

You would like to establish a trust fund that would pay annual payments to your heirs of $100,000 a year forever. You expect the

trust fund to earn an average return of 6.5 percent. How much do you need to deposit into this trust fund today to achieve your goal? Group of answer choices
Business
1 answer:
Andrej [43]2 years ago
5 0

Answer:

The amount to deposited = $1,538,461.54

Explanation:

<em>A fund that pays a fixed amount for forever is an example of a perpetuity. Hence, the amount to be deposited today is the present value of the perpetuity.</em>

This given below as follows:

PV = A ×   1/r

PV - present value of perpetuity

r- Interest rate = 6.5%. A- annual cash flow - 100,000

PV = 100,000 ×  1/0.065=  1,538,461.54  

The amount to deposited = $1,538,461.54  

You might be interested in
When GaGa began adding novelty bars in new flavors, what was the effect on the width and depth of its product mix?
Yanka [14]

Answer:

It increased the depth of their product mix.

The depth of the product mix is basically how many different types of variations of the same product are offered, e.g. Coke, Diet Coke, Coke Zero, etc. Increasing product depth involves new flavors, different package sizes or other specific characteristics regarding the product.

Product width refers to the different types of products offered by the company, e.g. Toyota offers sedans, trucks, SUVs, minivans. In this case, product width is not affected.

6 0
2 years ago
A person who produces work in the vernacular is one who
balu736 [363]
Writes in their own language as used colloquially.
4 0
3 years ago
Select the true statement or statements regarding the loanable funds market. Foreign entities cannot save in the United States.
Shalnov [3]

<u>Solution: </u>

The following are the correct and incorrect options

<u>Correct option</u>: Households used to save and those savings are utilized for investment through the intermediaries like bank. Firms and governments take those funds for their investment acts.

<u>Correct option</u>: Foreigner can invest in the US (suppose foreign direct investment) but can’t save here, since there is difference in currency (suppose a foreigner earns in pond can’t save in US dollar).

<u>Other options are not correct: </u>

<u>Incorrect option</u>: Savings means personal savings, which are not yet kept into a bank.

<u>Incorrect option</u>: such purchases are investments but not savings.

3 0
3 years ago
Each of the following represents a good habit if you’re trying to prevent ID theft EXCEPT…
Eddi Din [679]

Answer:

The correct answer is letter "C": Using one very secure password for all of your major financial accounts.

Explanation:

Using one password -r<em>egardless of how secure it could be</em>- for all the different accounts an individual might have increases the chances that in front of identity theft, the attacker will get the most of the individual's financial assets. <em>It is recommended to have different passcodes with different accounts and avoid using personal information within the passwords.</em>

5 0
3 years ago
When a government transfers the rights and obligations of an asset to another legally separate governmental or private sector en
Mamont248 [21]

Answer: A service concession arrangement (D)

Explanation:

A service concession arrangement is an agreement whereby the government contracts with a private enterprise in order to operate, develop and maintain an infrastructural facility such as a tunnel, bridge, road, hospital, airport or prison. The government regulates and controls the kind of services the operator must provide, to whom the services are provided and at the price the services will be provided.

Concession agreements can also be between a non-governmental owner and a concessionaire, whereby the non-governmental owner gives the operator the exclusive rights to use and maintain the business for a stipulated period of time under specified conditions.

4 0
2 years ago
Other questions:
  • Suppose Cook Plus manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $ 22. Cook Plus projects sales
    15·1 answer
  • Gambling is something you should only do if you have discretionary income?
    9·2 answers
  • Which statement describes an hourly wage job? Each paycheck is the exact same regardless of number of hours worked. Each paychec
    5·1 answer
  • An operation is located in a jurisdiction that allows it to hold TCS food without temperature control. How many hours can it dis
    9·1 answer
  • Leading economic indicators
    15·1 answer
  • Excessive alcohol consumption can lead to liver failure, as well as deterioration of other organs. Suppose the government has op
    11·1 answer
  • The following transactions occurred during July: 1. Received $1,350 cash for services performed during July. 2. Received $6,950
    8·1 answer
  • Why are so many people on brainly weird.
    15·1 answer
  • How did great britain enforce the payment of taxes.
    13·1 answer
  • Susan works for a firm that has high degrees of formalization in their organizational structure. She understands that one of the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!