On January 2, 2010, Claudia Company Inherited a Trust Fund

question 67

Multiple Choice

On January 2, 2010, Claudia Company inherited a trust fund that she could use for college tuition.Claudia hopes to make five equal withdrawals of $40, 000 from the fund that will earn 10% compounded annually.The first withdrawal will be made on January 2, 2011.How much does she need to have invested in the fund on January 2, 2010, to be able to withdraw the needed amounts each year?

• A)$151, 631
• B)$200, 000
• C)$244, 204
• D)$268, 624

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