The university your daughter wants to go in the fall of 2107…

The university your daughter wants to go in the fall of 2107 requested that you pay the tuition for all 4 years upfront when she starts school. The current tuition bill is $50,000. You expect the inflation rate to average 2% per year, and that the university pays a 4 % interest per year for the four year period. What is the present worth of your payment?

An equipment bought at cost of $Y will be depreciated using…

An equipment bought at cost of $Y will be depreciated using either the SOYD (sum- of -years – digit method) or SL (straight-line) method. This equipment will be depreciated over a period of 5 years with a salvage value of $X. Determine the percentage increase in depreciation charges in year 2 for the SOYD method over the SL method.

An investment set up as a perpetual trust provides an annual…

An investment set up as a perpetual trust provides an annual disbursement of $25,000 for the first 20 years and an undetermined amount from year 21. If the trust is set up with $500,000, determine the disbursement that can be made from year 21 through infinity if the interest earned is 6% per year.