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Wealthy Ms. Decatur wants to provide her nephew with payments of $12,000 per year to supplement his Income during the 46 years that the expects

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Wealthy Ms. Decatur wants to provide her nephew with payments of $12,000 per year to supplement his Income during the 46 years that the expects him to live in retirement. She wants the first payment to be made to him at the end of future year 18, when he will reach retirement age (thus the last payment will be made at the end of year 6), if the trust department at Farmer City State Bank can earn a 42 annual rate of return on money it manages, how much should Ms. Decatur deposit there today to create the trust account her nephew will eventually draw from other words: what is the present value of a deferred annuity of $12,000 to be received at the end of each of years 18 through 63 if the discount rates 42 per year) [Your senior citizen Instructor was especially careful on this one there are no typos.) A $125,636.14 B. 5115.712.20 C. 5242.659.95 D.5114843.93 E $120.572.12

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