How much is the trust fund payment worth in today dollars

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Problem 1: Peter will receive a trust fund payment 8 years from now totaling $45,000. Based on a discount rate of 10.5%, how much is the trust fund payment worth in today's dollars?

Group of answer choices

Option 1: $5,625.00

Option 2: $20,056.87

Option 3: $100,025.50

Option 4: $20,244.84

Reference no: EM133009902

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