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Author Question: At the age of 75, Mrs. Walker decided to set up a trust fund for her grandson, which can take care ... (Read 80 times)

erika

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on: Jun 6, 2019

Question 1

After retirement, Andy plans to buy bonds in a perpetual fund. What amount must Andy place in a perpetual fund today, if it earns 4.8% compounded semi-annually and the first monthly payment of $500 in perpetuity will be made one year from today?
◦ $125 000
◦ $120 396
◦ $119 629
◦ $126 244
◦ $120 873

Question 2

At the age of 75, Mrs. Walker decided to set up a trust fund for her grandson, which can take care of some of his expenses for the rest of his life. She made an initial contribution of $150 000 to set up the trust fund, which would make the first semi-annual payment of perpetuity to her grandson, 5 years from now. If the funds in trust earn 5% compounded annually, what is the maximum payment the trust can make to Mrs. Walker's grandson in perpetuity?
◦ $4727.68
◦ $4844.43
◦ $5746.53
◦ $4613.74
◦ $6033.85
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
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Marked as best answer by erika on Jun 6, 2019

janeli

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Reply #1 on: Jun 6, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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erika

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Reply 2 on: Jun 6, 2019
Thanks for the timely response, appreciate it

amandalm

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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