On January 2, 2014, Christopher Inherited a Trust Fund That

question 106

Multiple Choice

On January 2, 2014, Christopher inherited a trust fund that he could use for college tuition. Christopher hopes to make five equal withdrawals of $40,000 from the fund that will earn 10% compounded annually. The first withdrawal will be made on January 2, 2015. How much does he need to have invested in the fund on January 2, 2014, to be able to withdraw the needed amounts each year?

• A) $151,631
• B) $200,000
• C) $244,204
• D) $268,624

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Definitions:

Dietary Modifications

Changes made to one’s diet in order to improve health, manage allergies, or accommodate medical conditions.

Vitamin Supplements

Products taken orally that contain one or more vitamins or other nutrients intended to supplement one's diet.

Nitrogen Balance

A measure of the balance between nitrogen intake and nitrogen excretion, indicative of the body's anabolic or catabolic state.

Tissue Growth

The process of cellular multiplication or increase in the size of tissues, which can be normal or pathological, such as in tumor development.