Your grandparents would like to establish a trust fund that will pay you and your heirs $200,000 per year forever with the first payment 11 years from today. if the trust fund earns an annual return of 3.9 percent, how much must your grandparents deposit today?
Added by Matthew C.
Step 1
039} = 5,128,205.13 \] Show more…
Show all steps
Your feedback will help us improve your experience
Nick Johnson and 71 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Suppose that you want to have a $32,000 retirement fund after 38 years. How much will you need to deposit now if you can obtain an APR of 9.3%, compounded daily? Assume that no additional deposits are to be made to the account.
Kathleen C.
Suppose that you want to have a $39,000 retirement fund after 39 years. How much will you need to deposit now if you can obtain an APR of 11.3%, compounded daily? Assume that no additional deposits are to be made to the account.
Mukesh D.
Grandpa Joe wants to open an account for his grandchildren that he hopes will have $\$ 80,000$ in it after 20 years. How much must he deposit now into an account that yields 2.75$\%$ interest, compounded monthly, so he can be assured of reaching his goal?
Banking Services
Present Value of Investments
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD