Question
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
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 percent annual interest rate, what is the value of this trust?
| A | $918,787 | |
| B | $850,729 | |
| C | $1,000,000 | |
| D | $1,250,000 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
1st Edition
1607962233, 978-1607962236
