Question
George Jefferson established a trust fund that provides $174,500 in scholarships each year in perpetuity for worthy students. The trust fund earns a 2 percent
| George Jefferson established a trust fund that provides $174,500 in scholarships each year in perpetuity for worthy students. The trust fund earns a 2 percent annual rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed? |
| $5,235,000 | |
| $6,980,000 | |
| $4,188,000 | |
| $3,079,227 | |
| $8,725,000 |
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
