Deferred Perpetuity Word Problem - Help Please

Sue0113

Junior Member
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Feb 1, 2012
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114
A trust fund will pay you $1200 per month for life once you turn 18. You are currently 9. Interest rates are expected to be 4.12% compunded quarterly. What is the current value of your trust fund?
PV = 1200/.00342 =350,877.1930
i/y= 4.12
c/y =4
p/y=4
n=(9)(4)=36
PMT = 0
Using financial calculator my answer is incorrect of $242487.94
Could someone explain my mistake,

 
For starters, your PV is $1200 short. Beginning of Period, again.
 
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