« previous next »

Author Question: A wealthy industrialist wishes to establish a 2,000,000 trust fund which will provide income for his ... (Read 129 times)

cagreen833

  • Hero Member
  • *****
  • Posts: 544
on: Jul 10, 2018
A wealthy industrialist wishes to establish a 2,000,000 trust fund which will provide income for his grandchild into perpetuity. He stipulates in the trust agreement that the principal may not be distributed.
 
  The grandchild may only receive the interest earned. If the interest rate earned on the trust is expected to be at least 7 percent in all future periods, how much income will the grandchild receive each year?

Question 2

Total security risk is the sum of a security's nondiversifiable and diversifiable risk.
 
  Indicate whether the statement is true or false


ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jul 10, 2018
Answer to Question 1

2,000,000  0.07 = 140,000

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Eleanor Roosevelt dispenses soup to the needy. As a wealthy young socialite, she exhibited little .. Eleanor Roosevelt dispenses soup to the needy. As a wealthy young socialite, she exhibited little ..
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
Relationship between Income and Happiness in the United States Relationship between Income and Happiness in the United States
How the Return to Education Affects the Distribution of Income How the Return to Education Affects the Distribution of Income
Lone-parent household income and the degree of vulnerability Lone-parent household income and the degree of vulnerability
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
Video: Corpus Callosum Animation

For a complete list of videos, visit our video library