You Were Left $100,000 in a Trust Fund Set Up

question 160

Multiple Choice

You were left $100,000 in a trust fund set up by your grandfather.The fund pays 6.5% interest.You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately.How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account?

• A) $24,736
• B) $26,038
• C) $27,409
• D) $28,779
• E) $30,218

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The state of a person who is unable to pay his or her debts without respect to time; one whose liabilities exceed his or her assets.

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