How much money must you deposit today to fund

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Reference no: EM132001673

You would like to establish a trust fund that will provide 10,000 a year forever for your heirs. the trust fund is going to be invested very conservatively so the expected rate of return is only 2.50. The trust will begin paying out the year after your death (and you assume you will live 50 more years from today), but you are going to fund it now. How much money must you deposit today to fund this gift to your heirs, assuming you would earn 2.50 percent on your investment?

Reference no: EM132001673

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