If your broker tells you that a trust to which you are a beneficiary has changed and instead of getting $5000 per year starting next year you will be getting $4000 per year starting next year, the present value to you has
A)fallen.
B)risen.
C)remained unchanged.
D)necessarily become more predictable.

Question

Quizplus · Accepted Answer

The present value of the trust's benefits to the beneficiary has fallen because they will now receive $4000 instead of $5000 per year, meaning they will receive less money over time.

If Your Broker Tells You That a Trust to Which