Your Rich Uncle Establishes a Trust in Your Name and Deposits

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