A Trust Fund Is Being Set Up by a Single

question 8

Short Answer

A trust fund is being set up by a single payment so that at the end of 5 years there will be $10,000 in the fund.If the interest rate is 3
% compounded quarterly,how much money should be paid initially into the trust fund?

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Definitions:

Available

Referring to resources or goods that are obtainable and can be utilized.

Perfectly Price Elastic

This refers to a situation where the demand for a product or service changes infinitely with a very small change in price.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity supplied by producers.

Horizontal

A direction or plane that runs parallel to the ground or horizon.