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Emily expects to receive $66,000 from a trust fund in 5 years. What is the current...

Emily expects to receive $66,000 from a trust fund in 5 years. What is the current value of this fund if it is discounted at 9.5% compounded quarterly? (Please round your answer to the nearest two decimals).

Select one or more:

a. 35120.77

b. 45,250.17

c. 34172.30

d. 41,272.96

Solutions

Expert Solution

Ans d. 41,272.96

FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
PV = FV/ (1 + r )^n
PV = 66000 / ((1 + 9.5%/4)^20)
PV = 41272.96

jeff jeffy answered 3 years ago
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