How much money is needed to establish a fund paying $80,000 annually forever with the first payment

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How much money is needed to establish a fund paying $80,000 annually forever with the first payment made immediately if the fund will earn interest at 5% p.a. compounded semi-annually?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Posted Date: Mar 19, 2024 02:58 PM

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How much money is needed to establish a fund paying $80,000 annually forever with the first payment

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You can calculate the present value of this perpetuity using the following formula Present Valu... View the full answer

Intermediate Accounting

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