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You just figured out you've secretly had a $1,000 trust fund in your name this whole time. First off, congratulations. Share the wealth with your
You just figured out you've secretly had a $1,000 trust fund in your name this whole time. First off, congratulations. Share the wealth with your friends. Invest the rest in index funds.
But you take a look at it and realize you can't access the $1,000 for another 5 years. Assuming a 7% discount rate, how much is that trust worthtoday? Round to the nearest dollar.
A.$713
B.$1403
C.$1000
D.$935
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