Your Grandmother Just Died and Left You $100,000 in a Trust

question 133

Multiple Choice

Your grandmother just died and left you $100,000 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)$24,736
• B)$26,038
• C)$27,409
• D)$28,779
• E)$30,218