Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at ₱125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?

Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at ₱125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?

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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