Nancy Jackson just learned that she received an inheritance from her grandmother. The inheritance provides for Nancy to receive $5100 per year at the end of the year for each of the next 6 years. Assuming a discount rate of 11%, what is the value of this inheritance to Nancy today? Type of Cash Flow PV of $1 FV of $1 PV ordinary annuity FV ordinary annuity PV annuity due O $21576 O $40356 O $18849 O $23949 Periods 6 6 6 6 6 Interest Rate 11% 11% 11% 11% 11% Factor 0.5346 1.8704 4.2305 7.9129 4.6959
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- Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.921. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per month for the rest of her life. Louisa paid $200,000 for the annuity. What is the expected value of Louisa’s annuity? a. $18,000 b. $21,900 c. $200,000 d. $262,800 e. Not able to be determined from this informationIf Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how much will she accumulate assuming she can earn 8% p.a. and the first contribution is made immediately? Select one: a. $858,020.78 b. $652,810.16 c. $90,000.00 d. $875,181.20
- Accounting Elizabeth Brown just learned that she received an inheritance from her grandmother. The inheritance provides for Elizabeth to receive $4400 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 8%, what is the value of this inheritance to Elizabeth today? Type of Cash Flow Periods Interest Rate Factor PV of $1 8% 0.6806 FV of $1 8% 1.4693 PV ordinary annuity 8% 3.9927 FV ordinary annuity 8% 5.8666 PV annuity due 8% 4.3121Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friend’s trust fund payments. (Click here to see present value and future value tables) Amount ofYearly Receipt Rate Time Current Value $5,800 8% 5 years $fill in the blank 1 $11,700 12% 10 years $fill in the blank 2 $18,000 10% 16 years $fill in the blank 3 $23,000 15% 20 years $fill in the blank 4
- Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87When you were born, your grandfather established a trust fund for you in the Cayman Islands The account has been eaming interest at the rate of 15% per year f this account will be worth $90,000 on your 23th birthday, how much did your grandfather deposit on the day you were born? Click the icon to view the interest and annuity table for discrete compounding when i 15% per year Choose the correct answer below. OA. $3,618 O B. $2.965 OC. $13,500 O D. $13,335 O E. $3,913 Click to select your answer.Marion's grandfather's will established a trust that will pay her $1,800 every three months for 12 years. The first payment will be made five years from now, when she turns 20. If money is worth 6.8% compounded quarterly, what is today's economic value of the bequest? (Do not round Intermedlate calculations and round your final answer to 2 declmal places.) Present value $4
- Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $90,000$90,000 in 1616 years. Assuming an APR of 3.7%3.7% compounded quarterly, how much of the $90,000$90,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? O a. $32,689.86 O b. $7,087.50 O c. $39,812.95 O d. $30,752.46 Oe. $24,085.01An inheritance provides you with a $52,000 per year payment for the next 40 years. A 6.00% discount rate, what is the present value of the inheritance? What is the gross amount of the payments?