Your parents have built quite a nest egg through their hard work. They promise to give...

 

Transcribed Image Text:

Your parents have built quite a nest egg through their hard work. They promise to give you $500,000 upon their death. Based on their age and the actuarial tables, you expect them to live another 30 years. When calculating your personal worth today, you want to estimate the present value (PV) of this future cash payment to you and your family. Use the average rate of return of the S&P 500, 7% to discount the future payment. 5 Points $125,000 $65,684 $250,000 $65,864 Your parents have built quite a nest egg through their hard work. They promise to give you $500,000 upon their death. Based on their age and the actuarial tables, you expect them to live another 30 years. When calculating your personal worth today, you want to estimate the present value (PV) of this future cash payment to you and your family. Use the average rate of return of the S&P 500, 7% to discount the future payment. 5 Points $125,000 $65,684 $250,000 $65,864

Answer rating: 100% (QA)

The detailed answer for the above question is provided below I understand The present value of t... View the full answer