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Shauna wishes to establish a trust fund from which her son can withdraw $ 5 0 , 0 0 0 every six months for 1

Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for 18 years, when he reaches 30 years old. After 8 years, he will receive $500,000 for college. The trust will be invested at 8.7% per annum compounded semi-annually. How large should the trust be?
Question 6Answer
a.
$703,207.85
b.
$901,253.49
c.
$1,154,236.15
d.
$301,308.71

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