Your Great Aunt Left You an Inheritance in the Form

question 116

Multiple Choice

Your great aunt left you an inheritance in the form of a trust.The trust agreement states that you are to receive $2,400 on the first day of each year,starting immediately and continuing for 20 years.What is the value of this inheritance today if the applicable discount rate is 6.75 percent?

• A)$24,890.88
• B)$26,311.16
• C)$27,677.34
• D)$28,909.29
• E)$29,333.33

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Definitions:

Connective Tissues

Tissue that supports, binds together, and protects the organs and other tissues of the body.

Ground Substance

The non-cellular, gel-like substance surrounding connective tissue cells, providing support and mediating communication between cells.

Blood Vessels

Blood vessels are tubular structures that carry blood throughout the body, including the arteries, veins, and capillaries.

Chondrocytes

Cells found within cartilage tissue that are responsible for the synthesis and maintenance of the cartilaginous matrix.