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After a long successful career, you are hoping to set up a fund for your...

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Finance

After a long successful career, you are hoping to set up a fund for your family to pay out $50,000 per year indefinitely.

a. If current interest rates are 6% how much will you need to deposit today?

b. Suppose, you want to see the payout grow by 4% each to cover any unforeseen costs, by how much does your deposit need to increase to develop the sustaining fund?

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