2) A benefactor wishes to establish a trust fund to pay a researcher's salary for T years. The salary is to start at $52.102.37 per year and increase at a fractional rate of (1/17) per year. Find the amount of money that the benefactor must deposit in a trust fund paying interest at a rate 8.09 % per year. Assume that the researcher's salary is paid continuously, the interest is compounded continuously, and the salary increases are granted continuously.

2) A benefactor wishes to establish a trust fund to pay a researcher's salary for T years. The salary is to start at $52.102.37 per year and increase at a fractional rate of (1/17) per year. Find the amount of money that the benefactor must deposit in a trust fund paying interest at a rate 8.09 % per year. Assume that the researcher's salary is paid continuously, the interest is compounded continuously, and the salary increases are granted continuously.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 12EA: Your friend has a trust fund that will pay her the following amounts at the given interest rate for...

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