Reference no: EM132139861

A local attorney has unfortunately learned that he has been seriously conned by Bernie Madoff for many years. The attorney invested $400,000 with Madoff 18 years ago and had been led to believe that his annual return was averaging 13%. Because this sounded like a terrific investment, he let his money ride every year and made no withdrawals over the 18-year period. He was provided statements of his account at the end of each month and decided to reinvest the "earnings" in the fund. He bragged to his friends about "this guy I know" and actually introduced some of them to Madoff as well. Suddenly, and without any notice, he was stunned to learn that Madoff was conducting a massive fraudulent Ponzi scheme and that he had lost all his money funds he had counted on for retirement. Actually, he was planning to begin drawing down on the investment at the rate of $10,000 per month when he retired at age 65 on July1, 2014. How much money did the attorney think he had in his account before he learned of the fraud?