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Outreach Funds Established a Trust That Provides $150,000 in Scholarships

Question 98

Multiple Choice

Outreach Funds established a trust that provides $150,000 in scholarships each year forever.The trust fund earns a rate of return of 4.03 percent.How much money was contributed to the fund 20 years ago,assuming that only the interest income is distributed?


A) $2,291,613.13
B) $3,722,084.37
C) $3,225,000.00
D) $3,000,000.00
E) $3,100,348.24

Correct Answer:

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