Paula Poser Will Receive $80,000 on December 31,2022,from a Trust

question 72

Essay

Paula Poser will receive $80,000 on December 31,2022,from a trust fund established by her mother.Assuming the appropriate interest rate for discounting is 12% (compounded semiannually),what is the present value of this amount as of January 1,2017 (5 years earlier)?

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Definitions:

Ionic

Relating to or involving ions, typically describing chemical bonds formed through the electrostatic attraction between oppositely charged ions.

Coordinate Covalent

A type of chemical bond where both electrons come from the same atom, typically seen in complex ions or molecules where a metal atom is bonded to one or more ligands.

Alkaline Earth Elements

A group of elements in the periodic table comprising beryllium, magnesium, calcium, strontium, barium, and radium, characterized by their two valence electrons.

Transition Metals

Elements found in the central block of the periodic table, characterized by their ability to form variable oxidation states and to create colored compounds.