You Inherit a Trust Account That Promises to Pay $13,000

question 25

Essay

You inherit a trust account that promises to pay $13,000 a year for 10 years and then distribute $100,000. If current yields are 10 percent, what is the value of the trust?​

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Definitions:

Decades Ago

a term used to reference a period of ten years or more in the past.

Empty-Nest Syndrome

A feeling of loneliness or depression that parents may experience when their children grow up and leave home for the first time.

Departure

The action of leaving, especially to start a journey or to leave a place of residence.

Grown Children

Adult offspring who have reached maturity and typically live independently from their parents.