Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reaches 16 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be?
Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reaches 16 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reaches 16 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be?
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where is the excel sheet ,so i can see how you get the answer. I want to see the workings please
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