Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of

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thousand dollars per year beginning next year. If the trust fund will earn an interest rate of 10% per year compounded continuously, find the amount that she must place in the trust fund now.

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Hint: Use the formula .

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A. $350,000

B. ?$290,000

C. ?$380,000

D. ?$370,000

E. ?$400,000


Answer: A

Mathematics

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