Ask Question
18 March, 23:32

Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $ 4 comma 000$4,000 in the first year, and will grow by 66 % per year, forever. If the interest rate is 1111 %, how much must Martin provide to fund this bequest?

+4
Answers (1)
  1. 18 March, 23:43
    0
    Amount = CF/k - g

    where CF = $4000; k = 1111%=11.11; g = 66% = 0.66

    = 4000 / (11.11 - 0.66) = $41,800

    This is the amount that must be provided to fund the bequest
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $ ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers