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A trust fund is being set up with a single payment of K. This amount is to be invested at a fixed annual interest rate
A trust fund is being set up with a single payment of K. This amount is to be invested at a fixed annual interest rate of the fund pays out a fixed annual amount. The first payment is to be made one year after the trust fund was set up. What is the largest amount which can be paid out each year if the fund is to last forever derive the expression and then calculate the annual amount? (K =10,00,000, r= 8%)
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