John and Jen will receive $100,000 from their trust fund in 5.75 years. Their discount rate is

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John and Jen will receive $100,000 from their trust fund in 5.75 years. Their discount rate is 5 percent per quarter (note there are 3 months in one quarter). How much would they be willing to sell the trust fund for today?

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Personal Financial Planning

ISBN: 9780357438480

15th Edition

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: May 18, 2023 06:38 AM

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John and Jen will receive $100,000 from their trust fund in 5.75 years. Their discount rate is

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ANSWER To calculate the present value of the trust fund we need to discount the future payment of 10... View the full answer

Personal Financial Planning

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