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Question 1 5 pts You want to fund a trust that will pay out $4,000 starting in 1 year. Each year thereafter, forever, the amount
Question 1 5 pts You want to fund a trust that will pay out $4,000 starting in 1 year. Each year thereafter, forever, the amount paid out will increase by 2.5%. In year 2, therefore, the trust will pay out $4,100. Assume the interest rate is always 4.0%. How much do you need to place in the trust today to make this happen? 95,000 100,000 125,000 160,000 233,333 266,667
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