You Would Like to Establish a Trust Fund That Will

question 42

Multiple Choice

You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 2.75%. How much money must you deposit today to fund this gift for your heirs?

• A) $1,333,333.33
• B) $1,375,000.00
• C) $1,425,000.00
• D) $1,666,666.67
• E) $1,818,181.82

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Definitions:

Pesticide Spraying

Pesticide spraying is the application of chemicals to crops, buildings, or landscapes to control pests such as insects, weeds, and disease agents.

Transgenic Crops

Plants that have been genetically modified to express a gene from another species, improving traits like resistance to pests or herbicides.

Pest-Resistant

Attribute of a plant or organism that has a natural or genetically engineered resistance to damage by pests.

Nontarget Pests

Species inadvertently affected by pesticides or other control measures meant for specific pests, often leading to ecological imbalances.