Anna's grandmother established a trust and deposited $250,000 into it.The trust pays a guaranteed 4.25 percent rate of return.Anna will receive all the interest earnings on an annual basis and a charity will receive the principal amount at Anna's passing.How much income will Anna receive each year?

Question

Quizplus · Accepted Answer

To calculate the amount of income Anna will receive each year, we need to multiply the principal amount by the rate of return:
$250,000 x 4.25% = $10,625
Therefore, Anna will receive $10,625 in interest earnings each year. The correct answer is D.

Anna's Grandmother Established a Trust and Deposited $250,000 into It