Upon the death of his uncle, Lucien receives an inheritance of $70,000, which he invests for 13 years at 6.7% compounded continuouslyWhat is the future value of the inheritance?
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- Zayden will receive an inheritance of R850 000 four years from now. His discount rate is a 9,2% interest rate, compounded semi-annually. Which of the following values is closest to the amount that he should accept today for the right to his inheritance?On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the inheritance, the annuity pays $1,000 each January 1, $2,000 each April 1, $1,500 each July 1, and $5000 each October 1. (a) Using i = 5%, calculate the value of this inheritance on the day Alex inherits it. (Round your answer to the nearest cent.) $ (b) If the value on the day she inherits it is $140,000, find the annual effective rate i used to calculate this value to the nearest hundredth of a percent. %Marcus receives an inheritance of $9,000. He decides to invest this money in a 13-year certificate of deposit (CD) that pays 7.5% interest compounded monthly. How much money will Marcus receive when he redeems the CD at the end of the 13 years? Marcus will receive $ 23788.22 (Round to the nearest cent.)
- A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain the money in trust until it reaches $60,000.00. If the money is invested at 8% compounded quarterly, when will the girl get it?On his 10th birthday, a boy has left an inheritance. The inheritance will be paid in a lump sum of P10, 000.00 on his 21st birthday. What is the present value of the inheritance as of the boy’s sixth birthday, if the interest is compounded annually?John's estate is to be divided into three equal parts and invested, to be paid out as follows: i. John's two children will each receive their share in 20 level annual payments, beginning one year after John's death. ii. Charity Q will receive its share as equal annual payments in perpetuity beginning 21 years after John's death. Q's annual payment is twice the annual payment for one child. Determine the effective interest rate at which the estate is invested. Less than 5% At least 5% but less than 5.25% At least 5.25% but less than 5.5o% At least 5-50% but less than 5.75% At least 5.75%
- At the birth of his daughter, Mr Lucas Dalitso Zulu invested K10,000 at 6% p.a.compounded annually. What amount would accrue to her if she left the moneyinvested until she attained the age of: (i) 18 years; (ii) 21 years; (iii) 40 years; and (iv)60 years?In 18 years, Maggie Beechwood is to receive $100,000 under the terms of a trust established by her grandparents. Assuming an interest rate of 5.7%, compounded continuously, what is the present value of Maggie's legacy? The present value of the legacy is $ (Round to the nearest cent as needed.)8. Roger and Samantha are brother and sister that will split an inheritance equally. Roger spends his share on a perpetuity due paying 60,000 for the first 20 years and 90,000 thereafter. The price of this perpetuity is based on an annual effective rate of 4%. Samantha spends her share on an n year deferred perpetuity due paying 308,961.6427 annually, and the price she pays for her perpetuity is based on an annual effective rate of 5%. Find n.
- D creates a trust to last for 10 years, with income to D for the 10 year period and at the end of 10 years, remainder to X or X's estate. In Year 8 the trust is worth $ 5,000,000 and D's life estate is worth $ 2,000,000. In that year D sells his life estate to the trust for its $ 2,000,000 actuarial value and dies 2 years later. Assuming the trust had a value of $ 6,000,000 at D's death, the amount of trust property includible in D's gross estate, if any, is:Your grandmother left you an inheritance in the form of a trust. The trust agreement states that you are to receive R2 500 on the first day of each year, starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6,20%? a. b. d. R66 811,30 R40 706,92 R39 942,42 R49 942,42Maxine agrees to purchase Jacob's property utilizing a private annuity. Jacob's table life expectancy is ten years at the date of the agreement, and the property has a fair market value of $400,000. The private annuity payment is $45,000 per year, and Maxine dies after making two payments. At Maxine's death, what amount is included in her gross estate with regards to the private annuity and the transferred property? $0 $90,000 $310,000 $400,000
