At 6 interest how much money is required in the trust fund


A trust fund is to be established for three purposes: (1) to provide $750,000 for the construction and $250,000 for the initial equipment of a small engineering laboratory; (2) to pay the $150,000 per year laboratory operating cost; and (3) to pay for $100,000 of replacement equipment every 4 years, beginning 4 years from now. At 6% interest, how much money is required in the trust fund to provide for the laboratory and equipment and its perpetual operation and equipment replacement?

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Business Economics: At 6 interest how much money is required in the trust fund
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