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Zina [86]
3 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]3 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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The cost performance index (CPI): a. can be used to estimate the projected cost of completing the project. b. indicates that the
Evgen [1.6K]

Answer:

The correct answer is letter "A": can be used to estimate the projected cost of completing the project.

Explanation:

The Cost Performance Index or CPI measures the projected cost of work completed compared to the current cost spent. The CPI represents a ratio of earned value to actual cost. If the CPI is greater than one, the project is under budget. When the CPI equals one the planned and actual costs are equal. If the CPI is higher than one, the project is over budget.

3 0
3 years ago
Sarah is now in the Singapore airport and has 6000 Singapore dollars in her pocket. Sarah is next going to the Czech Republic an
timurjin [86]

Answer:

98,760 Czech korunas for 6,000 Singapore dollars

Explanation:

For computing the number of Koruna she is able to exchange first we have to determine the Singapore dollar exchange rate in Czech koruna which is

= Singapore dollar exchange rate ÷  Czech exchange rate

= 0.790 ÷ 0.048

= 16.46

And, there are 6,000 Singapore dollars in her pocket

So, the number of Koruna she is able to exchange  is

= 16.46 × 6,000 Singapore dollars

= 98,760 Czech korunas for 6,000 Singapore dollars

6 0
3 years ago
The banking system receives a new cash deposit of $250,000. total deposits eventually rise by $1 million. the value of the reser
never [62]

Cash deposit received by bank= $250,000

Total deposits= $1,000,000

The Reserve ratio will be 0.25

The amount of reservable liabilities that commercial banks must keep onto rather than lend out or invest is known as the reserve ratio. The central bank of the nation, in this case, the Federal Reserve in the United States, sets this criterion. It is often referred to as the ratio of cash reserves.

The reserve requirement, which is frequently used interchangeably with the reserve ratio, refers to the minimum amount of reserves that a bank must maintain.

Learn more about reserve ratio here:

brainly.com/question/13981670

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Notorious B.I.G.
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