Invest part of winnings in trust for your child education

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Reference no: EM131611270

You have won a lottery and would like to invest part of the winnings in a trust for your child’s college education. The college expense is expected to be $50,000 per year for four consecutive years, with the first expense expected to be due one year from today. You also wish to use the trust money to buy her a $30,000 car at the beginning of the senior year, four years from today. If the annual rate of return the trust will earn is expected to be 5%, how much need you invest in the trust today.

Reference no: EM131611270

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