Arrange trust for her descendant education

Assignment Help Financial Management

Reference no: EM131872439

Having just sold a unicorn startup, a now-wealthy entrepreneur would like to arrange a trust for her descendant’s education. For every subsequent generation, she wants to leave $350,000 for tuition. She estimates that there will be a generation every 30 years and expects the trust to be able to obtain a 10% rate of return. Her children, the first recipients, will receive the initial installment 5 years from now, and this trust should continue in perpetuity. How much money should she set aside in the trust today?

Reference no: EM131872439

Questions Cloud

Group approach when making decisions : As a leader would you prefer to use the individual or group approach when making decisions? Please explain and evaluate the pros and cons of each approach.

Establishing a unique differentiation : What steps should it consider in establishing a unique differentiation from others in its category?

Record the entries to first charge production costs : Record the entries to first charge production costs for the period and to then record the loss due to spoiled work

Advantages and disadvantages of zero-based budgeting : Discuss the advantages and disadvantages of zero-based budgeting. Why it is so unique to the health care industry?

Arrange trust for her descendant education : Having just sold a unicorn startup, a now-wealthy entrepreneur would like to arrange a trust for her descendant’s education.

Describe the prevalence of stalking in a small midwest city : Describe the prevalence of stalking in a small Midwest city. Describe the nature and scope of prostitution at truck stops along I-95.

Prepare the entry to record the interest expense at october : Prepare the entry to record the interest expense at October 1, 2010. Assume that accrued interest payable was credited when the bonds were issued

Identify the strategic points in quantitative dissertation : Using the "Modified 10 Points Template," identify each of the 10 strategic points in this quantitative dissertation.

What is the correct price for the coupon bond at time zero : What is the correct price for the coupon bond at time zero? (immediately)?

User Account

All Pages