Your client has been given a trust fund valued at $1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is invested at a 7 percent interest rate, how many months will it last your client once she starts to withdraw the money?

To determine how many months the trust fund will last, we need to calculate the monthly interest earned and subtract it from the monthly withdrawal amount.

First, we need to calculate the monthly interest rate. We can do this by dividing the annual interest rate by 12.

Monthly interest rate = (7% / 100) / 12 = 0.00583

Next, we can calculate the monthly interest earned by multiplying the trust fund value by the monthly interest rate.

Monthly interest earned = $1,000,000 * 0.00583 = $5,830

Now, we can calculate how long the trust fund will last by dividing the remaining trust fund value by the monthly withdrawal amount.

Remaining trust fund value = $1,000,000
Monthly withdrawal amount = $30,000

Months it will last = Remaining trust fund value / (Monthly withdrawal amount - Monthly interest earned)

Months it will last = $1,000,000 / ($30,000 - $5,830) = $1,000,000 / $24,170 = 41.32 months

Therefore, the trust fund will last approximately 41 months for your client once she starts to withdraw the money.