Trust Fund Grandparents decide to put a lump sumof money into a trust fund on their granddaughter’s10th birthday so that she will have $1,000,000 on her60th birthday. If the fund pays 11%, compoundedmonthly, how much money must they put in theaccount?

Trust Fund Grandparents decide to put a lump sumof money into a trust fund on their granddaughter’s10th birthday so that she will have $1,000,000 on her60th birthday. If the fund pays 11%, compoundedmonthly, how much money must they put in theaccount?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 29CE

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Question

Trust Fund Grandparents decide to put a lump sum
of money into a trust fund on their granddaughter’s
10th birthday so that she will have $1,000,000 on her
60th birthday. If the fund pays 11%, compounded
monthly, how much money must they put in the
account?

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