You have just turned 25 and may now spend a portion of the trust fund your parents established for you. The terms of the trust fund allow you to withdraw 60 beginning-of-the-year cash flows of $100,000 each

An investment firm has offered to pay you cash for all of the fund today. If the rate they use to discount the cash flows is 16% per year, what is their offer price today for your pension fund?
A) $4,605,750,853
B) $6,000,000.00
C) $624,915.20
D) $724,901.63

Answer: D
Explanation: D)
PV = PMT × × (1 + r)1 = $60,000 × × (1.16)1 = $724,901.63.
MODE = BEGIN
INPUT 60 16 ? -60,000 0
KEY N I/Y PV PMT FV
CPT 724,901.63