You Just Inherited a Trust That Will Pay You $100,000

question 74

Multiple Choice

You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exactly four more years. Assuming a 10 percent annual interest rate, what is the value of this trust?

• A)$683,013
• B)$751,315
• C)$1,000,000
• D)$1,100,000

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Definitions:

Fovea

A small depression in the retina where visual acuity is highest due to the concentration of cones.

Optic Disk

The point in the eye where the optic nerve fibers exit the retina, often referred to as the blind spot because it lacks photoreceptors.

Ganglion Cells

Neurons whose axons form the optic nerve.

Axon Terminals

The endpoints of axons where neurotransmitters are released to communicate with neighboring neurons or muscle cells.