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Deffense [45]
3 years ago
8

Your grandparents would like to establish a trust fund that will pay you and your heirs $215,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 4.2 percent, how much must your grandparents deposit today?
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

They should invest $5,119,047.619 today.

Explanation:

The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.

The formula for the value or price of perpetuity is,

P0 or V = Cash Flow / r

Thus,

P0 or V = 215000 / 0.04   =  $5,119,047.619

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erastovalidia [21]
GoPro product is a digital camera with a wide lens that has the capability of take photos. The GoPro brand products are used in sports.
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5 0
4 years ago
The US agricultural sector experienced a severe drought in 2012. A drought decreases the supply of agricultural products, which
Nataliya [291]

Answer:

True

Explanation:

Exceptionally good weather will guarantee a good yield in crops. This will lead to an increase in supply of produce to the market, and when supply increases, the supply curve shifts to the right.

This is simply because there are more products and more sellers, and this will result in more supply.

5 0
4 years ago
A recipe for 100 servings contains 25 pounds of ground beef, 10 pounds of pasta, 10 pounds of tomato paste, and 5 pounds of chee
adelina 88 [10]

Answer:

125 pounds

Explanation:

The computation of the number of pounds of ground beef will be in your new recipe is shown below:

= Number of pounds contained in ground beef × conversion factor

= 25 pounds of ground beef × 5

= 125 pounds

By multiplying the number of pounds with the conversion factor we can get the number of pounds of ground beef        

6 0
3 years ago
Need help, keep getting this wrong. Thanks in advance.
geniusboy [140]
Sorry I don’t know but thank for the point
4 0
3 years ago
Qing Yuan and most of her friends are retiring and moving out of the city where they worked all their lives, and living on their
Anastaziya [24]

Answer:

economic and legal

Explanation:

In the given situation, the economic and legal would be impacted by the change as the economic environment is impacted since the people would not be working that results they would be less contributed to the economy due to this it would develop a more burden in social security benefits that strict the laws so it would be lead to the legal environment

Therefore the above represent the answer

6 0
3 years ago
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