1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andrew11 [14]
3 years ago
7

You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be

invested very conservatively so the expected rate of return is only 2.75%. How much money must you deposit today to fund this gift for your heirs?
Business
1 answer:
Finger [1]3 years ago
5 0

Answer:

$1,818,181.81

Explanation:

Data provided:

Amount that will be provided a year = $50,000

Expected rate of return = 2.75%

Now,

The Present value of perpetuity is given as:

Present value of perpetuity = \frac{\textup{Annual return}}{\textup{Expected rate of return}}

on substituting the respective values, we get

Present value of perpetuity = \frac{\textup{50,000}}{\textup{0.0275}}

or

Present value of perpetuity = $1,818,181.81

Hence,

The amount that must be deposited today to fund this gift is $1,818,181.81

You might be interested in
Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer b
Reptile [31]

Answer:

b. quasi contract

Explanation:

-Liquidated damages refers to a mechanism in a contract in which a party can request a compensation because of breach.

-Quasi contract is  an agreement that is recognised by a court when there is no written contract between two parties and there is a conflict about a payment of a product or service.

-Reformation is a change made by a court in a document when one party that participates in it makes a request.

-Restitution is when someone receives a compensation for a loss or an injury.

According to the options given and the definitions, the answer is quasi contract.

7 0
3 years ago
Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business str
spayn [35]

Answer:

d. cross-functional strategies

Explanation:

In an organisation, for the proper running of all the departments or functions, proper communications and coordination is required. So implementing the cross-functional strategies can succeed when all the functional areas of the organisation are properly coordinated with each other. And by implementing  these strategies we can trace out the business strategy with supporting of all functional areas. These are useful to place all functional strategies properly.

Thus the answer is d. cross-functional strategies.

7 0
3 years ago
A government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and en
balu736 [363]

The correct answer to this open question is the following.

Here we do not have a question. Just a statement.

What is your question? What do you want to know?

However, trying to help you we can comment on the following.

If the government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and encourage the use of bus and rail services instead, it had to make sure that the impact will have the expected benefits because that could not always be the case.  

Some other considerations need to be made for this to happen. For instance, if the government wants to dissuade people to use their cars, the government has to make sure that the public transportation system is in optimal conditions, it is safe to ride, and can guarantee the transportation times for people to be on time in their jobs.

Otherwise, people will still be driving their cars because they think that using cars is a more safe and better way to travel.

Public transportation also has to comply with strict pollution emissions controls.

3 0
3 years ago
Which would you need in the event of professional mishaps?
Artyom0805 [142]
You will need...A. insurance in the event of a proffesional mishap.
8 0
3 years ago
Read 2 more answers
Please post detailed answers to the following questions. Please use complete sentences. How can the use of technology both help
qaws [65]

Answer:

Technology has made our lives simpler and easy. With the help of technology we can stay connected even if we live miles away from our close ones. But on the other hand it also separates us from the real world.

There are pros and cons of everything and technology can also be said as curse and boon for our society. Excessive use of anything can be harmful. With the increasing technological advancement there is increase in crimes as well.

8 0
2 years ago
Other questions:
  • The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for three years. The project's cost is $55
    14·1 answer
  • One of the reasons the apple ii computer was popular was that ________.
    8·1 answer
  • Adam Company's net income for the year is $100 million. Weighed-average shares are 50 million shares. In addition to common shar
    9·1 answer
  • Badan
    6·1 answer
  • Which tasks are done by both historians and detectives? Check all that apply.
    6·2 answers
  • Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of t
    10·1 answer
  • An individual client purchased his residence 5 years ago for $200,000. For 3 of the last 5 years, the client rented out the prop
    12·1 answer
  • Trinity College sold season tickets for the 2019 football season for $400,000. A total of 8 games will be played during Septembe
    8·2 answers
  • Using the AS-AD and IS-LM models, show the effects of an increase in consumer confidence on the position of the AD, AS, IS, and
    15·1 answer
  • mommy bloggers are women who review children's products and discuss family-related topics on their personal blogs, which are ind
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!