Question: please confirm the answer in second picture. I need the cash flow diagram ONLY if this solution is correct. thank you A rather wealthy man
A rather wealthy man decided he would like to arrange for his descendants to be well educated. He would like each child to have $60,000 for his or her education. He plans to setup a perpetual trust fund so that six children will receive this assistance each generation; He estimated that there will be four generation per century, spaced 25 years apart. He expects the trust to be able to obtain a 4% rate of return, and first recipients to receive the money ten years hence. How much money should he now set aside in the trust? A rather wealthy man decided he would like to arrange for his descendants to be well educated, He would like cach child to have $60,000 for his or her education. He plans to setup a perpetual trust fund so that six children will receive this assistance each generation. He estimated that there will be four generation per century, spaced 25 years apart. He expects the trust to be able to obtain a 4% rate of return, and first recipients to receive the money ten years hence. How much money should he now set aside in the trust? 0 Expert Answer Anonymous 2 hours later to A Given that :- A rather wealthy man decided he would like arrange for his descendents to be well educated. 6($60,000) (Ali 141,25) $360,000 (0-0240) $8640 P AL: - $8650 0.0 = $ 216,000 pa ($ 216,000 + $360,000)(P);, 44, 10) = $575,000 (0-6756) $389,150
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