Trust Funds
Not what you're looking for?
Lorette J of Alvin research Corporation was thrilled with the response she had received from drug companies for her latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration testing and was still in the early stages of development, but the interest was intense. She received an offer described below.
A trust fund would be set up for the next 8 years. At the end of that period, Lorette J would receive the proceeds (and discount them back to the present at 10 percent).
The annual interest rate on this annuity is 10 percent annually (5 percent semiannually).
How would I determine the present value of the trust fund's final value?
Purchase this Solution
Solution Summary
This Solution contains calculations to aid you in understanding the Solution to this question.
Solution Preview
Assumptions
a) There is an annuity of $100000 after every six months for next 8 ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce