What Minimum Amount Will Have to Be Dedicated Today to a Fund

question 186

Short Answer

What minimum amount will have to be dedicated today to a fund earning 5.6% compounded quarterly if the first quarterly payment of $2,000 in perpetuity is to occur:
a) three months from now?
b) five years from now?

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Definitions:

Debtor

An individual or entity that owes money or services to another entity.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American jurisdictions.

Priority Rule

A principle used to establish the order of importance or precedence among several claims or interests against the same asset or legal right.

Artisan's Lien

A legal claim allowing a worker or service provider to retain possession of a client's property until payment for services rendered on that property is received.