A middle age couple has made an agreement with Landscape Forever Company, a gravesite landscaping and maintenance
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Question:
A middle age couple has made an agreement with Landscape Forever Company, a gravesite landscaping and maintenance firm. The agreement states that the company will provide deluxe maintenance for the couples selected gravesite forever for an annual fee of $ To arrange payment the couple has set up a variable rate perpetual trust fund with their bank. The bank guarantees that the trust fund will earn a minimum of per year. Assume that the services of Landscape Forever will not be needed until one of them die, and that they live until the age of
What is the minimum amount of money that the couple would have to deposit into the trust fund
ANSWER PART I is PF
PART II
Suppose that the couple made this minimum deposit at the age of and suppose that the that interest rate changes as follows.
Age
Age
Age
Age
What is the largest sum of money they can withdraw at age and still have money for the landscape?
Related Book For
Canadian Business & the Law
ISBN: 978-0176501624
4th edition
Authors: Dorothy DuPlessis, Shannnon o'Byrne, Steven Enman, Sally Gunz
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