It Is Your 6^th Birthday Today

question 10

Multiple Choice

It is your 6^th 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 22^nd 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:

Truncated Version

A shortened form or version of a document, statement, or piece of information, typically preserving only the most essential parts.

Stop-Payment Order

An order by a drawer that instructs the drawee bank not to pay an issued check.

Drawer

In the context of financial transactions, the person who writes or issues a cheque or draft directing a bank to pay the specified amount to a third party.

Drawee

The party in a financial transaction who is directed to pay a certain amount of money by the drawer's order.