How much money is required in the trust fund

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Reference no: EM13559036

A trust fund is to be established for the three purposes: (1) To provide $750000 for th construction and $250000 for the initial equipment of a small engineering laboratory; (2) to pay the $150000 per year laboratory operating cost; and (3) to pay for $100000 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?

Reference no: EM13559036

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