subject
Business, 11.02.2020 20:13 sval

Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,100 per year into a trust fund for Steve on his 20th birthday, and he just made a 6th payment into the fund. The grandfather (or his estate's trustee) will make 40 more $2,100 payments until a 46th and final payment is made on Steve's 65th birthday. The grandfather set things up this way because he wants Steve to work, not be a "trust fund baby," but he also wants to ensure that Steve is provided for in his old age. Until now, the grandfather has been disappointed with Ed, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Ed. He will make the first payment to a trust for Ed today, and he has instructed his trustee to make 40 additional equal annual payments until Ed turns 65, when the 41st and final payment will be made. If both trusts earn an annual return of 8%, how much must the grandfather put into Ed's trust today and each subsequent year to enable him to have the same retirement nest egg as Steve after the last payment is made on their 65th birthday?a. $3,726.b. $3,912.c. $4,107.d. $4,313.e. $4,528.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 15:30
Last week, linda's commission check was $84. if she earns a 12.5% commission on sales, what were her total sales?
Answers: 2
question
Business, 21.06.2019 21:30
Afreezer manufacturer might purchase sheets of steel, wiring, shelving, and so forth, as part of its final product. this is an example of what sub-classification of business market?
Answers: 1
question
Business, 22.06.2019 21:40
Which of the following comes after a period of recession in the business cycle? a. stagflation b. a drought c. a boom d. recovery
Answers: 1
question
Business, 23.06.2019 01:30
Which of the following is considered part of a country’s infrastructure?
Answers: 3
You know the right answer?
Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their grandfa...
Questions
question
Mathematics, 11.10.2019 16:00
question
Biology, 11.10.2019 16:00
question
Computers and Technology, 11.10.2019 16:00
question
Mathematics, 11.10.2019 16:00