What is the annual payout of this


Tim is creating a trust fund for all of his future descendants. He wishes to purchase a perpetuity that pays $1,000,000 per year forevermore. Suppose that he can earn 4.5%. What is the annual payout of this perpetuity?

A. $4,500.00

B. $34,122.65

C. $45,000.00

D. $4,500,000.00

E. $4,679,055.22

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the annual payout of this
Reference No:- TGS02411327

Expected delivery within 24 Hours