Mr. OConnor set up a trust account paying $500 per month in perpetuity to the local SPCA.

Question:

Mr. O’Connor set up a trust account paying $500 per month in to the local SPCA. These payments consume all of the interest earned monthly by the trust. Between what amounts does the balance in the trust account fluctuate if it earns 6% compounded monthly?
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...