Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with t...
Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.1 percent, how much must your grandparents deposit today?
Homework Answers
Ans Amount that grandparents must deposit today = $ 5,161,290.32
Amount that grandparents must deposit today = Regular amount / Rate of interest
= 160000 / 3.1%
= $ 5,161,290.32
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