What Is the Present Value of Your Trust Fund If

question 22

Multiple Choice

What is the present value of your trust fund if it promises to pay you $50,000 on your 30^th birthday (7 years from today) and earns 10% compounded annually?

• A) $25,000.00
• B) $25,657.91
• C) $28,223.70
• D) $29,411.76

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Definitions:

Perfection by Filing

A legal process to protect a secured interest in a debtor's property by filing appropriate documents with a governmental office or registry.

Perfection

In legal and financial contexts, it often relates to the process of securing a security interest in collateral, ensuring priority over other claims.

Financing Statement

A document filed by a creditor to indicate a security interest in the property of a debtor, used in securing loan agreements.

Perfection

In legal and finance contexts, the act of securing a priority interest in collateral to protect a secured loan or transaction.