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 a 10 percent annual interest rate, what is the value of this trust?
A) $620,921
B) $683,013
C) $1,000,000
D) $1,100,000
Correct Answer:
Verified
Correct Answer:
Verified
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