Question

Your rich uncle establishes a trust in your name and deposits $150,000 in it. The trust pays a guaranteed 4% rate of return. How much will you receive each year if the trust is required to pay you all of the interest earnings on an annual basis?

Answer 1

We are tasked to solve for the amount received each year if the trust fund is required to be paid with all the interest on an annual basis. We have other given values such as:
Deposit = $150,000
Rate of return = 4%
Interest earnings = Deposit * Rate of return
Interest earnings = $150,000 * 4%
Interest earnings = $6,000

The answer is $6,000.