Becky Wilkinson Wants to Establish a Trust Fund That Will

question 167

Multiple Choice

Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of thousand dollars per year beginning next year. If the trust fund will earn an interest rate of 10% per year compounded continuously, find the amount that she must place in the trust fund now. Hint: Use the formula .

---

Definitions:

Slope

A measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Graph

A graphical representation of data, functions, or equations, typically plotted on a coordinate system.

Slope

A measure of the steepness or incline of a line, often represented as the ratio of the change in y over the change in x between two points on the line.

Line

A straight one-dimensional figure having no thickness and extending infinitely in both directions.