You inherit a trust account that promises to pay $13,000 a year for 10 years and then distribute $100,000. If current yields are 10 percent, what is the value of the trust??
What will be an ideal response?
This problem is another illustration of present value, consisting of an annuity component and a single, lump sum payment.? $13,000(6.145) + 100,000(.386) = $118,485?The trust is currently worth $118,485. (PMT = -13000; N = 10; FV = -100000; I = 10; PV = ? PV = 118433.70.)?
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Brands and patents must be filed to protect intellectual property during the introduction stage
Indicate whether the statement is true or false
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