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patriot [66]
3 years ago
6

You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to

deposit today in one lump sum to achieve this goal if you can earn a guaranteed 4.5 percent rate of return?
Business
1 answer:
aivan3 [116]3 years ago
8 0

Answer:

$2,222,222.22

Explanation:

The data provided in the question

Annual scholarship provided = $100,000

Guaranteed rate of return = 4.5%

So by considering the above information, the amount i.e deposited today is

= Annual scholarship provided ÷ Guaranteed rate of return

= $100,000 ÷ 4.50%

= $2,222,222.22

By dividing the annual scholarship by the rate of return we can get the deposited amount

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Answer:

Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are typically businesses wishing to promote their products or services.

Explanation:

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A) the amount of electricity you use can vary from month to month
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In a market economy, a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hi
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d. Both a and b are correct.

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Alonzo, the marketing director for a major retailer, prepared a unified message for the new promotional campaign. after several
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4 0
3 years ago
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an
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Answer:

The withdrawals will be of  $ 11,379.014 per month

Explanation:

Future value of the annuities:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C         750.00

time 360(30 years x 12 monhs per year)

rate 0.008333333 (10% / 12 months)

750 \times \frac{1-(1+0.00833)^{-360} }{0.008333} = PV\\

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C \times \frac{(1+r)^{time} -1}{rate} = PV\\

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rate             0.005 (6% / 12 months)

250 \times \frac{(1+0.005)^{360} -1}{0.005} = PV\\

PV $251,128.7606

Total 1,695,365.84 + 251,128.76 = 1.946.494,6‬

and from here we withdraw for 25 years:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 1,946,495

time 300 (25 years x 12 months)

rate 0.004166667 (5% / 12 months)

1946494.6 \div \frac{1-(1+0.004167)^{-300} }{0.004167} = C\\

C  $ 11,379.014

6 0
3 years ago
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