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:

Teratogens

Agents, such as chemicals or viruses, that can reach the embryo or fetus during prenatal development and cause harm.

Birth Defects

Abnormalities of structure, function, or body metabolism present at birth that can lead to physical, mental, or social disabilities.

Low-Birth-Weight

A term used for babies born with a weight of less than 2,500 grams (5 pounds, 8 ounces), which can be associated with various health challenges.

Heavy Smoker

An individual who smokes tobacco products excessively, significantly increasing their risk of developing health problems.