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A client is given a trust fund worth $1,000,000.00. He can't access any money until he turns 65, which is in 25 years. At that time, he can withdraw $25,000 per month. If the trust fund is invested at a 5.5% rate, how many months will it last him once he starts withdrawing the money (until there is none left)?

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Solution Summary

The solution explains how to calculate number of months the trust funds will last.

Solution Preview

See attached file.

First step is to calculate the future value of the trust fund. The fund is a lump sum amount, time period is 25 years ...

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