You would like to establish a trust fund that will provide $50,000 a year forever for...
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?
Homework Answers
Present value of perpetuity=Annual return/Expected rate of return
=50,000/0.0275
which is equal to
=$1,818,181.82(Approx).
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You would like to establish a trust fund that will provide
$50,000 a year forever for...
ou would like to establish a trust fund that will provide $50,000 a year forever for...
ou 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 percent. How much money must you deposit today to fund this gift for your heirs?
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?
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