Your client has been given a trust fund valued at $1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is invested at a 7% interest rate, how many months will it last your client once she starts to withdraw the money?
A) 77.05 months
B) 81.05 months
C) 99.05 months
D) 119.05 months

Question

Quizplus · Accepted Answer

The trust fund will grow to a larger amount over the 12 years due to the 7% interest rate. Once withdrawals begin, the fund will last for 99.05 months at $30,000 per month.

Your Client Has Been Given a Trust Fund Valued at $1