Roberta created an irrevocable trust using investment assets worth $700,000. Her friend Mo, age 65, will receive all the income, payable annually for his lifetime. At his death, all principal will pass outright to Roberta’s niece Sherrie (or to her estate). (a) At a rate of 4%, calculate the current value of Mo’s and Sherrie’s property interests. (b) Also, calculate the values at 12%. (c) Comment on the influence of a higher discount rate.