Question: When Derek was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday. Derek just turned 23.

When Derek was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday. Derek just turned 23. What is the value of his trust today if the trust fund earned 7 percent interest? If he had to wait until age 40 to receive the money, what is the present value of the $20,000 to be received in 17 years?

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Dereks trust is worth approximately 8880 today if he is to receive 20000 at age 35 F... View full answer

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