Luca Lucchesi has $10 million today and is setting up a trustfund for his 2 children.
If r=4%, how much should the fund pay each child next year?
Mr. Lucchesi is also thinking that his children need to learn tomake their own mark in the financial world. So he is thinking ofwithholding the trust fund payments until 5 years (i.e. t=5).Determine the perpetual annual payments that could be supported insuch a scenario.
