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

question 286

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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