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:

Higher Levels

Positions, statuses, or stages that are considered superior or more advanced in a particular hierarchy or system.

Large Corporation

A significantly sized business entity that operates in multiple locations, often internationally, with a substantial number of employees and high revenue.

Small Business

In Canada, a business that has 5–100 employees, is independently owned and operated, and does not dominate its industry.

Franchise

What results when one business owner sells to another the right to operate the same business in another location.