Your Great Aunt Left You an Inheritance in the Form

question 14

Multiple Choice

Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $3,600 on the first day of each year, starting immediately and continuing for 20 years. What is the value of this inheritance today if the applicable discount rate is 6.75 percent?

• A)$38,890.88
• B)$40,311.16
• C)$41,516.01
• D)$42,909.29
• E)$43,333.33

---

Definitions:

Jury Selection

The process of questioning and choosing jurors from a pool of candidates to serve on a jury during a trial.

Competitive Industry

A Competitive Industry is characterized by many producers and consumers with the products being largely similar, leading to minimal ability for firms to set prices higher than market rates.

Long-Run Equilibrium

is an economic condition where all inputs and outputs in a market are fully adjusted to any changes, leading to a stable state of operations over time.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.