Your Rich Uncle Establishes a Trust in Your Name and Deposits

question 22

Multiple Choice

Your rich uncle establishes a trust in your name and deposits $150,000 in it. The trust pays a guaranteed 4% rate of return. How much will you receive each year if the trust is required to pay you all of the interest earnings on an annual basis?

• A) $3,750
• B) $4,000
• C) $4,500
• D) $5,400
• E) $6,000

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Definitions:

Behavioral Traits

Characteristics or patterns of behavior that are observable and often considered to be inherent or acquired through interaction with the environment.

Consistency

The quality of always behaving in the same way or having the same attitudes, standards, and beliefs, leading to reliability and predictability.

Distinctiveness

How much an individual's behavior in a given situation differs from their behavior in other situations.

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards throughout.