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Grandma wants to set up a trust to pay the family $41,000 each year-end in perpetuity. If the trust earns 4% per annum (effective), the

Grandma wants to set up a trust to pay the family $41,000 each year-end in perpetuity. If the trust earns 4% per annum (effective), the amount Grandma deposits today to achieve this, is closest to:

Select one:

A.

$102,500

B.

$164,000

C.

$1,025,000

D.

$1,640,000

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