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Finite Mathematics for the Managerial, Life, and Social SciencesTRUST FUNDS A young man is the beneficiary of a trust fund established for him 21 years ago at his birth. If the original amount placed in trust was $ 10 , 000 , how much will he receive if the money has earned interest at the rate of 6% / year compounded annually? Compounded quarterly? Compounded monthly?BuyFind*arrow_forward*

12th Edition

Soo T. Tan

Publisher: Cengage Learning

ISBN: 9781337405782

Chapter 5.1, Problem 52E

Textbook Problem

**TRUST FUNDS **A young man is the beneficiary of a trust fund established for him 21 years ago at his birth. If the original amount placed in trust was

Expert Solution

To determine

The amount that the young man will earn from the trust fund when it is compounded annually, when compounded quarterly and when compounded monthly.

**Given:**

The fund invested was

The interest rate is

Time period is

**Approach:**

The expression of the accumulated amount.

Here,

**Calculation:**

Calculate the present worth of the trust fund when compounded annually.

The period per year is,

Substitute

Calculate the present worth of the trust fund when compounded quarterly.

The period per year is,

Substitute

Finite Mathematics for the Managerial, Life, and Social Sciences

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Simple interest is computed...Ch. 5.CRQ - Fill in the blanks. The effective rate of interest...Ch. 5.CRQ - Fill in the blanks. A sequence of payments made at...Ch. 5.CRQ - Fill in the blanks. The formula for the future...Ch. 5.CRQ - Fill in the blanks. The periodic payment R on a...Ch. 5.CRQ - Fill in the blanks. A sinking fund is an account...Ch. 5.CRQ - Fill in the blanks. An arithmetic progression is a...Ch. 5.CRQ - Fill in the blanks. 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For exercises 31 and 32, use the fact that for every integer n, b2a2=(b+a)(ban~=n(n1))...3.2.1. Prove that for ...

Discrete Mathematics With Applications

Monthly Payment on a loan If you borrow 5000 at an APR of r as a decimal from a lending institution that compou...

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

Given are five observations for two variables, x and y.
Develop a scatter diagram for these data.
What does th...

Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)

College Admissions Test Scores. Assume that the test scores from a college admissions test are normally distrib...

Essentials Of Statistics For Business & Economics

The following graph is of a function of the form f(x)=acos(nt)+bcos(mt). Estimate the coefficients a and b and ...

Calculus Volume 2

For the following exercises, match the exponential equation to the correct graph. y=4x y=3x1 y=2x+1 y=(12)x+2 y...

Calculus Volume 1