How much he will have to put into the fund

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Your father has decided to establish a trust fund for you and your sister. Dad wants to set up the trust so that she can withdraw $6,000 every three months for the next 10 years, and then at the end of the ten year period she would be able to withdraw a lump sum of $66,000. The trust will be invested at an annual rate of 5.6 percent compounded quarterly. Dad has asked you how much he will have to put into the fund today in order to fund the trust. Calculate your answer to the nearest dollar.

Reference no: EM131576908

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