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5 pts Question 1 You want to fund a trust that will pay out $5,000 starting in 1 year. Each year thereafter, forever, the amount
5 pts Question 1 You want to fund a trust that will pay out $5,000 starting in 1 year. Each year thereafter, forever, the amount paid out will increase by 1.5%. In year 2, therefore, the trust will pay out $5,075. Assume the interest rate is always 4.0%. How much do you need to place in the trust today to make this happen? 125,000 200,000 250,000 333,333 350,000 366,667
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