Multiple Choice
You just inherited a trust that will pay you $100,000 per year in perpetuity.However,the first payment will not occur for exactly five more years.Assuming an 8% annual interest rate,what is the value of this trust?
A) $850,729
B) $918,787
C) $1,000,000
D) $1,250,000
Correct Answer:
Verified
Correct Answer:
Verified
Q12: If the present value of $1.00 received
Q13: You would like to have enough money
Q14: If the annual interest rate is 12.00%,what
Q15: After retirement,you expect to live for 25
Q16: John House has taken a 20-year,$250,000 mortgage
Q21: For $10,000,you can purchase a five-year annuity
Q22: What is the eight-year present value annuity
Q40: "Accept investments that have positive net present
Q64: Describe how you would go about finding
Q94: One can find the present value of