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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  

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What item can a consumer expect to find in a retail store
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It would be "Meat to cook for dinner at home" that a consumer expect to find in a retail store since retail stores market to individuals and families, not large-scale projects. 
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3 years ago
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Andrew wants to purchase a new computer and go to the caribbean for spring break. the computer is priced at 1299, and the vacati
Mamont248 [21]

Andrew writes a check for $1,299 which is the  medium of exchange.

What is the way of transaction ?

  • A sale is a completed agreement between a buyer and a dealer to change goods, services, or fiscal means in return for plutocrats.
  • The term is also generally used in commercial accounts. As a business secretary, this plain description can get tricky.
  • A sale may be recorded by a company before or later depending on whether it uses an addendum account or cash account.

Here,

Andrew can easily determine that the price of the computer is more than the price of the vacation = Unit of Account

Andrew has $1,574 in his checking account

= Store of value

Andrew writes a check for $1,299

= Medium of exchange

Learn more about Way of transaction here:

https://brainly.in/question/2253597

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3 0
11 months ago
A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be:Group of answer
RideAnS [48]
Frictional unemployment is the result of voluntary employment transitions within an economy.
5 0
2 years ago
Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed
REY [17]

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

Break\:even=\frac{retained\:earnings}{equity\:ratio}

where,

retained earnings = net income (1- payout ratio)

                              = $525,000 (1 - 60%)

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therefore,

Break\:even=\frac{210,000}{0.3}

=$700,000

3 0
3 years ago
Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists o
jarptica [38.1K]

Answer: b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

Explanation:

Diversifiable risk is a risk that a particular security has or which can be seen in a certain sector. Market risk occurs when there's possibility that a particular investor will make loss due to certain factors which affects the entire market.

In the above scenario, the most likely to occur will be that the diversifiable risk of the portfolio will likely decline, but the expected market risk should not change.

It should be noted that diversification won't eliminate market risk. When more stocks are added, this brings about decline in diversification risk but market risk won't change.

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3 years ago
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