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he following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and

he following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.)

Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index
Rate of Return 15.83% 14.25% 3.77% 2.67%
Type Stock fund Stock fund Bond fund Bond fund

You wish to establish a trust fund from which your heirs can withdraw $5,000 per month for 10 years, at the end of which time they will receive $50,000. How large should the trust be if invested in the Fidelity stock fund? HINT [See Example 3.] (Round your answer to the nearest cent.)

$

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