Answered: Donald will receive $450,000 from his…

Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a return of 6% on his own until then. How much is his trust fund payment worth in today's dollars?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 10E

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Question

Donald will receive $450,000 from his trust fund in 20 years from today. He assumes
he could get a return of 6% on his own until then. How much is his trust fund payment
worth in today's dollars?

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