To calculate the future value of the trust after 7 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = the future value of the investment
P = the principal (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
In this case, the principal is $50,000, the interest rate is 5.25% (or 0.0525 as a decimal), the interest is compounded quarterly (n = 4), and the investment is held for 7 years (t = 7). So, we have:
A = 50000(1 + 0.0525/4)^(4*7)
A = 50000(1.013125)^28
A = 50000(1.419727)
A = $70,986.36
Therefore, after 7 years, you will get $70,986.36 from the trust.