You would like to establish a trust fund that will provide $20,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 5%. How
Much money must you deposit today to fund this gift for your heirs?
A) $210,000
B) $300,000
C) $350,000
D) $400,000
E) $440,000
Correct Answer:
Verified
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