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What is the maximum amount that should be willing to pay

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Question 1: Your parents set up a trust for you that you will not have access to until your 30th birthday, which is exactly 9 years from today. The trust will be worth exactly $200,000 on your 30th birthday. You need cash today and are willing to sell the rights to that trust today for a set amount. If the discount rate for such a cash flow is 12%, what is the maximum amount that someone should be willing to pay you today for the rights to the trust on your 30th birthday?

Reference no: EM132645170

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