YOU ARE PLANNING TO SET UP A 30-YEAR TRUST FUND FOR YOUR NIECE THAT...

4. You are planning to set up a 30-year trust fund for your niece that will pay $5,000 at the end of the first year and then the payments increase by 2.25% per year. The trust fund will earn on average a 5.75% annual rate of return. How much money should you invest today in order to provide the correct amount of funds to your niece? A) $72,645 B) $90,811 C) $142,857 D) $156,980 E) $175,788