You Just Inherited a Trust That Will Pay You $100,000

question 17

Multiple Choice

You just inherited a trust that will pay you $100,000 per year in perpetuity.However,the first payment will not occur for exactly five more years.Assuming an 8% annual interest rate,what is the value of this trust?

• A)$850,729
• B)$918,787
• C)$1,000,000
• D)$1,250,000

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Definitions:

Dentoalveolar Joint

A term that could describe the structural and functional relationship between teeth (dentition) and the alveolar bone, but not a commonly used term. More accurately referred to as the periodontal ligament.

Cervical Region

The upper part of the spine, consisting of the first seven vertebrae that form the neck.

Parietal Bones

Two bones forming the sides and roof of the cranium, each positioned on either side of the skull just behind the frontal bone.

Symphysis Pubis

A type of cartilaginous joint located between the left and right pubic bones near the front of the pelvis, providing slight movement and shock absorbtion.