py Harry has just bought a scratch lottery ticket and won €10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. What is the amount available on the 18th birthday of his daughter?

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: Annual deposit that needs to be deposited by uncle every year if he starts to deposit from this year…

Q: Kirk Van​ Houten, who has been married for 21 years, would like to buy his wife an expensive diamond…

A: The annual rate of return refers to the compounded rate of return earned on the principal amount…

Q: john is planning for his wedding with fiance jane. they believe they need 30,000 for ceremony to be…

A:

Q: Soon-to-be proud parents of a new born baby are planning to establish a scholarship fund for their…

A: To calculate the lump sum amount we need to calculate the present value of all the future cash flows…

Q: David is 40 years old and plan to retire in exactly 20 years. After retiring, he expects to withdraw…

A:

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: The parents of a newborn have decided to make deposits into an investment account on each of their…

A: Formula Present value = P*[1-(1+g)n*(1+r)-n]/(r-g) Where P - First payment i.e. $2500 g - Annual…

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment,…

A: Receipts = 1000 every quarter for 2 years Beginning of period payments Time Period = 2 years * 4 = 8…

Q: Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to…

A: Future value:

Q: Kirk Van​ Houten, who has been married for 2424 ​years, would like to buy his wife an expensive…

A: GUIDE: (1) Compound Interest FV=PV(1+mr​)mtwhere:FV  = future valuePV = present valuer = interest…

Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…

A:

Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…

A: Calculation of money will be in account.

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Allan plan to go to London to visit friends in three years. The trip is expected to cost a total of…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: Future value  The future value indicates the value of a current investment over a specified period…

Q: Kirk Van​ Houten, who has been married for 22 ​years, would like to buy his wife an expensive…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Your newborn daughter has received a total of 8,000 in cash from various friends and relatives. If…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and…

A: A money market fund is mutual fund that invests in liquid financial instruments. These instruments…

Q: Fatema wants to invest an amount of OMR.  2000 every year to go on vacations with her husband at the…

A: Annual Amount invested =OMR 2000 Years (n) = 5 Interest Rate(r1) = 7.85% = 0.0785 Interest rate(r2)…

Q: Kirk van houten, who has been married 21 years, would like to buy his wife an expensive diamond ring…

A: Step 1: Identify all the relevant data in the problemPresent Value = $4,507.00Future Value =…

Q: How much do you think her parents must deposit now in order for her to have a total of RM30,000 at…

A: Present Value: It is the present worth of the annuity payments or savings made in the future.…

Q: A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for…

A: A man won a lottery of worth = 730,000 pesos He invested 50% in trust funds for his son education =…

Q: How much should Charles save to put in an education fund for his child? Assume Charles needs $24,000…

A: Given, The amount required is $24,000 term is 10 years Rate is 4%

Q: If he accumulates $5,000,000, his parents have offered to match his savings. He invests $2,000,000…

A: This problem can be solved in light of present value and future value. The amount in a savings…

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded…

A: The investment return rate that is used to calculate present value is called the discount rate. In…

Q: Robert has inherited some money from his great-grandfather. He will get $5,533.00 when he graduates…

A: We can use the future value formula for compound interest:FV=P(1+r)nWhere: FV = Future value P =…

Q: SOLVE TO HAND LEGIBLE;  When a father dies, he leaves his children an inheritance of $3,000,000.00.…

A: Step 1: Step 2: Step 3: Step 4:

Q: Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her…

A: The time value of money is a fundamental concept in finance that recognizes the idea that the value…

Q: Trent and Doris Phillips have a new grandchild, William. They want to create a trust fund for him…

A: As per the concept of time value of money any sum deposited today grows in future.This is because of…

Q: Xia has an inheritance in a trust fund left by her recently deceased mother that will pay 50,000 at…

A: Present value of annuity Annuity is a series of equal payments at equal interval till the maturity.…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.