1.

A wealthy relative has set up a trust fund for you. In five years, you will receive the first of 300

monthly payments of $2500. You would like to have the money now to start a business. You

visit Mr. Hammerhead, the loans officer, and he agrees to lend you money if you sign over all of

your trust payments to the bank. How much would you receive if the bank charges interest at

6% compounded monthly?