When Aroon was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday. Aroon just turned 23. What is the value of his trust today if the trust fund earns 5 percent interest? If he had to wait until age 40 to receive the money, what is the present value today of the $20,000 to be received in 17 years? *** Click the following table icon to view the PVIF table: The present value, PV, of his trust today if the trust fund earns 5 percent interest is $ (Round to the nearest cent.)
When Aroon was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday. Aroon just turned 23. What is the value of his trust today if the trust fund earns 5 percent interest? If he had to wait until age 40 to receive the money, what is the present value today of the $20,000 to be received in 17 years? *** Click the following table icon to view the PVIF table: The present value, PV, of his trust today if the trust fund earns 5 percent interest is $ (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:When Aroon was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday.
Aroon just turned 23. What is the value of his trust today if the trust fund earns 5 percent interest? If he had to wait until
age 40 to receive the money, what is the present value today of the $20,000 to be received in 17 years?
Click the following table icon to view the PVIF table:
The present value, PV, of his trust today if the trust fund earns 5 percent interest is $
A
LO
a
863367
(Round to the nearest cent.)
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