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

question 99

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 four more years.Assuming a 10% annual interest rate,what is the value of this trust?

• A)$683,013
• B)$751,315
• C)$1,000,000
• D)$1,100,000

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