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:

Stress

A state of mental or emotional strain resulting from adverse or demanding circumstances, often affecting physical health.

Causes

The reasons or factors that lead to an event or condition, explaining why something happens.

Consequences

The outcomes or effects that result from a particular action or condition.

Divorce

A formal termination of a marriage through judicial or authoritative intervention.