You Want to Establish a Trust Fund That Will Provide

Multiple Choice

You want to establish a trust fund that will provide $50,000 a year forever for your heirs.If the fund can earn a guaranteed rate of return of 4.5 percent,how much must you deposit in a solitary lump sum to establish this trust?

A) $1,333,333
B) $2,250,000
C) $1,250,000
D) $1,666,667
E) $1,111,111