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: 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: y have just planned to put aside RM9,872.43 now for this purpose. (a) What is the interest rate per…

A: Given information : Future value 12000 Time period (years) 4 Amount set aside 9872.43 Farid…

Q: 3 4 9 6 7 8 9 10 11 12 13 14 15 16 17 18 19 0.816 0.794 0.763 0.735 0.713 0.681 0.630 0.583 0.582…

A: Here firstly we will assume that $19851 is the future value in 10years and $4500 is the present…

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: You have a newborn son.  You want to plan for his future and there are 2 things that you would like…

A: STEP 1 The amount of money that would be required today to support a series of future annuity…

Q: Sharie is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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

A: Future value:

Q: The parents of a newborn decide to make deposits into an educational savings account on each of…

A: It is a case where the parents of a daughter want to calculate the present value of an alternative…

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: Future value represents the future worth of existing cash flows. It is determined by compounding…

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: 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: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

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: To save for her newborn son's college education, Lea Wilson will invest $16,000 at the beginning of…

A: Payment = p = $16,000Time = t = 12 YearsInterest Rate = r = 12%Payment Type = at the beginning

Q: Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new…

A: A mutual fund is a pool of fund which is collected from various investors and the pool of fund is…

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: g the advi savings to Ehe knows s bonus of

A: Given information :

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: Jack wins a lottery. He now wants to put a fixed amount into a savings account paying   j1= 4% to…

A: Here in this case, first, we will compute the PV of annual payment from the 10th year onwards. Then…

Q: Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be…

A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2

Q: James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until…

A: Investment means engaging your funds to generate income in the future. Interest is a return which is…

Q: The parents of a newborn decide to make deposits into an educational savings account on each of…

A: Here,ParticularsValuesInterest rate (RATE)5.50%Annual deposits (PMT) $   2,200.00Number of payments…

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: 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.…

Q: a) Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the…

A: Annuity due is a type of regular payment which is done at the beginning of the tenure of deposit.…

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.