A trust fund is to be established for three purposes:
(1) To provide $750,000 for the construction and $250,000 for the initial equipment of a small engineering laboratory;
(2) To pay the $150,000 per year laboratory operating cost;
(3) To pay for $100,000 of replacement equipment every 4 years, beginning 4 years from now.
At 6% interest, how much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?
This question was answered on: Jul 11, 2017
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