It Is Your 6th Birthday Today

question 7

Multiple Choice

It is your 6th birthday today.You have a trust fund with $50,000 that is earning 8% per year.You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school.How much money will be left in the trust fund after your last withdrawal (rounded to the nearest $10) ?

• A) $125,660
• B) $35,780
• C) $4,140
• D) You will not have enough money to pay for graduate school.

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Definitions:

BCG Business Portfolio

A strategic planning tool that categorizes a company's products or services into four quadrants (Stars, Cash Cows, Question Marks, Dogs) based on market growth and market share.

SBU

Strategic Business Unit; a subunit within a larger organization that operates with its own mission, objectives, and market focus, separate from other business units.

SBUs

Organizational units within larger corporations, each responsible for its own market segment and bottom-line objectives, functioning with their strategies and objectives.

Question Marks

Products in a business portfolio that have high growth potential but low market share, often requiring significant investment to grow.