Your Grandmother Just Died and Left You $47,500 in a Trust

question 122

Multiple Choice

Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest.You must spend the money on your college education,and you must withdraw the money in 4 equal installments,beginning immediately.How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account?

• A) $14,321.05
• B) $10,415.31
• C) $12,628.56
• D) $9,894.54
• E) $13,019.14

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Definitions:

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Weakness or partial paralysis affecting one side of the body.

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A progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord, leading to muscle weakness and atrophy.

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Specialized cells that transmit nerve impulses; the basic building blocks of the nervous system, also known as neurons.

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A rare, inherited disorder that destroys nerve cells in the brain and spinal cord, progressively impairing motor and cognitive function.