A trust fund is to be established for three purposes (1) To provide $750,000 for the construction
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A trust fund is to be established for three purposes
(1) To provide $750,000 for the construction and $250,000 for the initial equipment of a small engineering laboratory;
(2) To pay the $150,000 per year laboratory operating cost; and
(3) To pay for $100,000 of replacement equipment every 4 years, beginning 4 years from now. At 6% interest, how much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?
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The trust fund has three components 1 P 1 million 2 For n P A i 150000006 25 millio...View the full answer
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