Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six months for 21 years, when he reaches 25 years old. At the end of which time, he will receive the remaining money in the trust, which she would like to be $100,000. The trust will be invested at 7% per annum compounded semi-annually. How large should the trust be?
Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six months for 21 years, when he reaches 25 years old. At the end of which time, he will receive the remaining money in the trust, which she would like to be $100,000. The trust will be invested at 7% per annum compounded semi-annually. How large should the trust be?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six months for 21 years, when he reaches 25 years old. At the end of which time, he will receive the remaining money in the trust, which she would like to be $100,000. The trust will be invested at 7% per annum compounded semi-annually. How large should the trust be?
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