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lidiya [134]
4 years ago
8

Your grandparents would like to establish a trust fund that will pay you and your heirs $130,000 per year forever with the first

payment one year from today. If the trust fund earns an annual return of 2.5 percent, how much must your grandparents deposit today
Business
1 answer:
posledela4 years ago
7 0

Answer:

My grandparents deposit $5200000 today.

Explanation:

The annual return earned by trust fund = $2.5 percent

It is given that the trust will pay annually a certain amount for infinite period so annual pay  = $130000 per year.

Now we have to calculate the invested or deposited amount by grandparents today.

The present value of future constant annual payment over infinite period = (P/A, i%, n = infinity) or 1 / i%

The amount that should be deposited today :

= 130000 \times \frac{1}{2.5 \ percent} \\= 5200000

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Read each of the four activities and put them in their proper sequence. Be advised that the action listed is not the only action
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Answer:

Step     Activities

1           Determine how expensive a car you can afford.

2.         Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars.

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3 years ago
You sell used cars. The best car on your lot has 100,000 miles on it. How could you describe this car to a prospective buyer to
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3 years ago
The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." suppose the government wanted to lower the
Maslowich

Answer:

The answer is 44.84%

Explanation:

39% tax bracket takes back the advantage of the lower 15% and 25% tax rates.

The process will finish once the income that is taxable gets to $10 million.

Therefore, you can get the tax attributable to taxable income which ranges from $335,000 to $10 million by using all the rates in the above schedule or, more simply, by multiplying by 34%

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3 years ago
Murkywater Company is considering a lockbox system. Its collection delay is currently 12 days.
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Answer:

$6,400,000

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= 4000 × $400 × 4

= $6,400,000

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