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Trust Fund
A legal entity established to hold assets on behalf of a person or group, often used for estate planning or to manage money for beneficiaries.
Present Value
A payment’s economically equivalent amount at a prior date, allowing for the time value of money.
Compounded Annually
Describes the process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.
Present Value
The present value of a future amount of money or series of cash flows using a predetermined rate of return.
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