What Is the Value Today of Receiving $2,500 at the End

question 42

Multiple Choice

What is the value today of receiving $2,500 at the end of three years,assuming an interest rate of 9% compounded annually?

• A)$1,984.
• B)$1,930.
• C)$2,104.
• D)$3,238.

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Definitions:

Property Distribution

The division of property assets among beneficiaries or heirs according to a will or the law of intestacy.

Spendthrift Trust

A trust designed to provide a beneficiary with income while protecting the trust assets from being claimed by creditors or the beneficiary's poor spending habits.

Trust Assets

Assets that are held and managed by a trust for the benefit of the trust's beneficiaries.

Investment Professional

an individual or organization specialized in advising clients on where and how to invest their money to achieve financial growth.