Multiple Choice
Becky Wilkinson wants to establish a trust fund that will provide her children and heirs with a perpetual annuity in the amount of 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. Hint: Use the formula
.
A)
B)
C)
D)
E)
Correct Answer:

Verified
Correct Answer:
Verified
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