Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: 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 seven percent in all future periods, how much income will the grandchild receive every year?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916274

Have any Question? 


Related Questions in Basic Finance

1 distinguish between the four types of relational

1. Distinguish between the four types of relational collaborative arrangements. Provide an example of each. 2. What do you believe will be the impact of the Internet on market distribution by 2010? 3. What is a shippers ...

A solid sphere with a uniform surface density is rolling

A solid sphere with a uniform surface density is rolling over a plane. It's translational kinetic energy is 80J. What is the kinetic energy of the rotational motion and the total kinetic energy?

1 compare and contrast manufacturing and geographic

1. Compare and contrast manufacturing and geographic postponement. 2. Define and illustrate cash-to-cash conversion, dwell time minimization, and cash spin. How do supply chain strategy and structure impact each? 3. Disc ...

Faro technologies whose products whose products include

FARO Technologies, whose products, whose products include portable 3D measurement equipment, recently had 17 million shares outstanding trading at $42 a share. Suppose the company announces its intention to raise $200 mi ...

On august 20 a stock index futures which expires on

On August 20 a stock index futures, which expires on September 20, was priced at 429.70. The index was at 428.51. The dividend yield was 2.7 percent. Discuss the concept of the implied repo rate on an index arbitrage tra ...

1 improving your credit score how can you improve your

1. Improving Your Credit Score. How can you improve your credit score and how long can it take to erase a poor credit history? 2. Reviewing Your Credit Score. How often should you review your credit report from each of t ...

Investment analysis and taxation of income propertiesa

Investment Analysis and Taxation of Income Properties A property produces a first year NOI of $100,000 which is expected to grow by 2% per year. If the property is expected to be sold in year 10, what is the expected sal ...

An article in the wall street journal discussing the nickel

An article in the Wall Street Journal discussing the nickel market contained the following: The sharp rise in nickel prices demonstrates how even a slight shift in demand and supply can roil tiny commodity markets like t ...

1 although economists generally discredit mercantilism can

1. Although economists generally discredit mercantilism, can you find any examples in the popular press where politicians or business leaders use similar arguments to protect an industry? 2. Identify some products initia ...

1 what is a currency swap2 what is a credit swap in what

1. What is a currency swap? 2. What is a credit swap? In what ways is it different from an interest-rate swap? 3. What is a credit default swap? What difficulties did credit default swaps cause during the financial crisi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro