Ask Question
BusinessBusiness
23 April, 02:07

The Jones Brothers recently established a trust fund that will provide annual scholarships of $12,000 indefinitely. These annual scholarships are: an ordinary annuity. an annuity due. amortized payments. a perpetuity. a perpetuity due.

+4
Answers (1)
  1. 23 April, 03:17
    0
    D. Perpetuity

    Explanation:

    Perpetuity is a type of annuity that has no end date. It is a fixed some of money paid every year to someone or for a purpose (in this case, scholarship) indefinitely. It is a form of annuity that lasts for ever.

    The stream of cash flow continues indefinitely. It is usually calculated by dividing Cash flow by discount rate. That is

    PV of Perpetuity = D/r

    Where

    D = Dividend

    r = interest rate, and

    PV = present value.

    The major characteristics of perpetuity is that it doesn't have a fixed time span and continues indefinitely.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Jones Brothers recently established a trust fund that will provide annual scholarships of $12,000 indefinitely. These annual ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When the president issues a rule or regulation that reorganizes or otherwise directs the affairs of the executive branch?
Answers (2)
Jose cruz earns $2,275 each month and works 37.5 hours each week. his employer pays him overtime (for hours beyond 37.5) and uses the overtime premium approach. cruz's overtime premium hourly rate is
Answers (1)
Bob hasn't been managing his finances very well and is in need of an emergency loan to pay rent. On July 10, he goes to Cash4U for a payday loan and borrows $500. Bob writes a postdated check for $555 which Cash4U will cash 6 days later on July 16.
Answers (1)
It is recommended that you create a budget for each (a) month (b) day (c) week (d) year
Answers (2)
Workers of Steel Company go on strike. During the strike, it is legal for the strikers to a. use violence. b. form a massed barrier to deny others access to the employer's plant. c. stay in the employer's plant without working. d.
Answers (1)
New Questions in Business
Penelope has decided to start contributing to her 401 (k) plan at work. She will contribute 6% of her weekly salary and her company will match 4% of her salary.
Answers (1)
You may not want to spend money to attend a seminar on becoming more of a right-brain thinker in light of recent research. what do these findings indicate
Answers (1)
The following computations were made from Clay Co.'s current-year-end books:Number of days' sales in inventory 61Number of days' sales in trade accounts receivable 33What was the number of days in Clay's current-year operating cycle? A. 33B. 47C.
Answers (1)
Assume that markup is based on selling price. Find the dollar markup and percent of markup on selling price. (Round your answers to 2 decimal places. Omit the "$" and "%" signs in your response.)
Answers (1)
Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer barbara pays tax of $12,000 on $120,000. the tax is a progressive tax. proportional tax. regressive tax. none of the above.
Answers (1)
Home » Business » The Jones Brothers recently established a trust fund that will provide annual scholarships of $12,000 indefinitely. These annual scholarships are: an ordinary annuity. an annuity due. amortized payments. a perpetuity. a perpetuity due.
Sign Up Forgot Password?