You Would Like to Establish a Trust Fund That Will

question 190

Multiple Choice

You would like to establish a trust fund that will provide $20,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 5%. How much money must you deposit today to fund this gift for your heirs?

• A) $210,000
• B) $300,000
• C) $350,000
• D) $400,000
• E) $440,000

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