Question
Janet Lopez wishes to establish a trust fund from which her son can withdraw $12,000 every six months for 20 years, when she reaches 21
Janet Lopez wishes to establish a trust fund from which her son can withdraw $12,000 every six months for 20 years, when she reaches 21 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $60,000. The trust will be invested at 8% per annum compounded semi-annually. How large should the trust be?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
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