Your Great-Aunt Left You an Inheritance in the Form of a Trust

question 133

Multiple Choice

Your great-aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,500 on the first day of each year,starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6.35%?

• A) $36,811.30
• B) $37,557.52
• C) $39,204.04
• D) $39,942.42
• E) $40,006.09

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Definitions:

Banana Peel

Often used metaphorically to describe a potential hazard or slip-up that seems trivial but can lead to significant consequences.

Injured

The state of having received harm or damage, physically or legally, which may serve as a basis for seeking compensation or redress in a court of law.

Sued

The act of bringing a legal action against an individual or entity, seeking a legal remedy for damages or enforcement of rights.

Exculpatory Clause

A contract clause that frees one party from liability in the event of a wrongdoing or negligence.