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When a small child, Derek’s grandfather established a trust fund for him to receive $20,000 on his 35 birthday. (Any earnings beyond $20,000 reverted to his grandfather.) Derek just turned 23. What is the value of his trust today if the trust fund earns 7 percent interest? What is the present value if he had to wait until age 40 to receive the money?Can you please show me what you are using for inputs.I have used I=7FV=20,000N= (I am not sure what this is). should I be using 23 and 40. My professor said that is wrong. Please let me know what you think.Thanks a lot
When a small child, Derek’s grandfather established a trust fund for him to receive $20,000 on his 35 birthday. (Any earnings beyond $20,000 reverted to his grandfather.) Derek just turned 23.What…
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