2. (15 Points) Laura Bennington of Cary, North Carolina, is a wealthy and successful real estate investor. Ms. Bennington plans to stop working at the end of 10 years from now, and she is currently drafting a 25-years retirement. Ms. Bennington plans to have a fixed income of $500,000/year for the first 10 years and $600,000/year for the rest of her retirement. All funds will be withdrawn at the beginning of every year. The discount rate (i) during the retirement years is 8%. Out of his vast wealth, Ms. Bennington wants to establish a trust fund to achieve her retirement goals. The fund will be professionally managed and is expected to yield 15%. How much does she need to deposit in this fund now to meet her goals? Answer 5 10 15 25 30 PV of last 15-year Annuity N PMT FV PV PV of (first 10-year annuity + PV of last 15-year Annuity) PMT N FV PV Value of the Trust Fund N PMT FV PV=Trust Fund