Solved

At the End of Every Year for the Next 45

Question 99

Multiple Choice

At the end of every year for the next 45 years a trust fund has to pay out $250,000. The money in the fund will be earning 9% compounded annually for the first 25 years and 6% compounded annually for the last 20 years. In order to be able to make these payments, how much money would have to be in the trust fund now?


A) $2,788,180
B) $5,323,125
C) $5,601,917
D) $7,017,445
E) $11,125,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions