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

question 71

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 five more years. Assuming a 10 percent annual interest rate, what is the value of this trust?

• A)$620,921
• B)$683,013
• C)$1,000,000
• D)$1,100,000

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