Multiple Choice
Your friend has a trust fund that will pay him $100,000 at the end of 10 years.Your friend,however,wants his money today.He promises to sign his trust fund over to you if you give him some money today.You require a 20% interest rate on money you lend to friends.How much would you be willing to lend under these terms?
A) $16,151
B) $50,000
C) $80,000
D) $0-it would be impossible to earn 20% interest on the loan.
Correct Answer:
Verified
Correct Answer:
Verified
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