The parents of children, ages 1, 3, and 6, wish to set up a trust fund that will pay x to each child upon attainment of age 18, and y to each child upon attainment of age 21. They will establish the trust fund with a single investment z. 

Find expression of z in terms of x, y, and v. (v = 1/(1+i)).

Answer rating: 100% (QA)

To find the expression of z in terms of x y and v where v 11i we need to consider the future value o... View the full answer