Your Brother, Who Is 6 Years Old, Just Received a Trust

Multiple Choice

Your brother, who is 6 years old, just received a trust fund that will be worth $25,000 when he is 21 years old. If the fund earns 10 percent interest compounded annually, what is the value of the fund today?

A) $104,602
B) $6,575
C) $5,975
D) $6,875