A legal dispute delayed for 18 months the disbursement of a $500,000 bequest designated to provide quarterly payments in perpetuity to a hospice While under the jurisdiction of the court, the funds earned interest at the rate of 5 compounded semiannually The hospice has just invested the $500,000 a...

At a focal date today FV of the 500000 bequest PV of the ordinary perpetuity For the F ...

A legal dispute delayed for 18 months the disbursement of a $500,000 bequest designated to provide quarterly

Question:

A legal dispute delayed for 18 months the disbursement of a $500,000 bequest designated to provide quarterly payments in to a hospice. While under the jurisdiction of the court, the funds earned interest at the rate of 5% compounded semiannually. The hospice has just invested the $500,000 along with its earnings in a perpetual fund earning 5.2% compounded semiannually. What payments will the hospice receive beginning three months from now?
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...