Tommy's grandparents have left him a trust fund that will pay him $5,000 a year for twenty years once he turns twenty-one, which is four years from today. Tommy would prefer to have
The cash today for a new car, a new snowboard, a season's ski pass, and various other
Necessities of life. His uncle has offered to pay him a lump sum today in return for the rights to
The trust fund payments. If Tommy can earn an average annual return of 12% on his money,
What is the minimum amount he should expect to receive for the rights to the fund? Round
Your answer to the nearest dollar.

Question

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The Answer of Tommy's grandparents have left him a trust fund that will pay him $5,000 a year for twenty years once he turns twenty-one, which is four years from today. Tommy would prefer to have
The cash today for a new car, a new snowboard, a season's ski pass, and various other
Necessities of life. His uncle has offered to pay him a lump sum today in return for the rights to
The trust fund payments. If Tommy can earn an average annual return of 12% on his money,
What is the minimum amount he should expect to receive for the rights to the fund? Round
Your answer to the nearest dollar.

Tommy's Grandparents Have Left Him a Trust Fund That Will