A rich woman would like to leave $10000 a year, starting 1 year from now, to be divided equally among all her descendants. she puts no time limit on this bequeathment and is able to invest for this long-term outlay of funds

QUESTION 1

How much must she invest now to meet such a long term commitment if she is able to invest for this long-term outlay of funds at 2.5% compounded annually?

QUESTION 2

How much must she invest now to meet such a long term commitment if she is able to invest for this long term outlay of funds at 2.5% compounded semi-annually?

Answer rating: 100% (QA)

1 When she has to invest annually P... View the full answer