What is the present value of your trust fund if you have projected that it will provide you with $50,000 on your 30th birthday (7 years from today) and it earns 10% compounded annually?
A)$25,000.00
B)$25,657.91
C)$28,223.70
D)$29,411.76

Question

Quizplus · Accepted Answer

We can use the formula for present value of a future sum: PV = FV / (1 + r)^n
PV = 50,000 / (1 + 0.10)^7
PV = $25,657.91

What Is the Present Value of Your Trust Fund If