Your Parents Have Promised to Give You $25,000 on Your

Multiple Choice

Your parents have promised to give you $25,000 on your wedding day if you wait 10 years to get married. Your sister is getting married today. What amount should she receive in today's dollars to match your gift? The appropriate discount rate is 12%

A) $10,000
B) $22,321
C) $8,049
D) $25,000