Question
I've asked this question five times, with five different answers. Fingers crossed on this last attempt! Thank you for your help, I'm just trying to
I've asked this question five times, with five different answers. Fingers crossed on this last attempt! Thank you for your help, I'm just trying to understand the why behind this.
You want to setup a trust today that will pay out scholarships for the less fortunate. You want the trust to pay out $100,000 in scholarships 30 years from today. You want this amount to increase 4% per year and go on forever. If your trust can earn 10% returns, how much do you need to put in the trust today?
If possible, please show a step by step explanation, I'm having a very difficult time understanding they why behind this question. Thank you!
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