You Would Like to Establish a Trust Fund That Would

question 122

Multiple Choice

You would like to establish a trust fund that would provide annual scholarships of $100,000 forever.How much would you have to deposit today in one lump sum to achieve this goal if you can earn a guaranteed 4.5 percent rate of return?

• A)$1,678,342
• B)$1,800,000
• C)$2,413,435
• D)$1,620,975
• E)$2,222,222

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Definitions:

Deductive

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Qualitative

Pertaining to or concerning the quality of something rather than its quantity. This approach often involves non-numerical analysis of data in research.

Dependent Variable

A variable in an experiment or study whose changes are determined by the influence of one or more independent variables.

Lung Cancer

A type of cancer that begins in the lungs, often associated with smoking tobacco, but also caused by exposure to pollutants, radon gas, and asbestos.