Bill is getting old so he would like to establish a trust fund that will...
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Bill is getting old so he would like to establish a trust fund that will provide $40,000 per year indefinitely for his heirs, with the first payment occurring a year from today. The fund is expected to generate an annual return of 5%, compounded annually. How much money does Bill need to invest today so that he can provide this gift for his heirs?
Select one:
a. $750,000
b. $721,154
c. $375,000
d. $800,000
e. $780,000
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