You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to deposit today in one lump sum to achieve this goal if you can earn a guaranteed 4.5% rate of return?
a. 1,678,342
b. 1,800,000
c. 2,413,435
d. 1,620,975
e. 2,222,222
Ans: e. 2,222,222
Business
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Nathville Laundry reported assets of $800 and equity of $480. What is Nathville's debt ratio?
a. 60% b. 40% c. 67% d. not enough information is provided
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Which of the following occurs when lower expectations lead to lower performance?
a. Pygmalion effect b. Horns effect c. Galatea effect d. Golem effect
Business