USING PRESENT WORTH ANALYSIS AND SHOWING ALL STEPS PARTI A middle age couple has made an agreement with Landscape Forever Company, a gravesite landscaping and maintenance firm. The agreement states that the company will provide "deluxe" maintenance for the couples selected gravesite forever for an annual fee of $1000. To arrange payment the couple has set up a variable rate perpetual trust fund with their bank. The bank guarantees that the trust fund will earn a minimum of 5% per year. Assume that the services of Landscape Forever will not be needed until one of them die, and that they live until the age of 100. What is the minimum amount of money that the couple would have to deposit into the trust fund (ANSWER PART I is 20000 (P/F, 5%, 49) PART II Suppose that the couple made this minimum deposit at the age of 50, and suppose that the that interest rate changes as follows. Age 50 - 54 5% Age 55-64 10% Age 65-74 15% Age 75 - 84 20% What is the largest sum of money they can withdraw at age 84 and still have money for the landscape?

USING PRESENT WORTH ANALYSIS AND SHOWING ALL STEPS PARTI A middle age couple has made an agreement with Landscape Forever Company, a gravesite landscaping and maintenance firm. The agreement states that the company will provide "deluxe" maintenance for the couples selected gravesite forever for an annual fee of $1000. To arrange payment the couple has set up a variable rate perpetual trust fund with their bank. The bank guarantees that the trust fund will earn a minimum of 5% per year. Assume that the services of Landscape Forever will not be needed until one of them die, and that they live until the age of 100. What is the minimum amount of money that the couple would have to deposit into the trust fund (ANSWER PART I is 20000 (P/F, 5%, 49) PART II Suppose that the couple made this minimum deposit at the age of 50, and suppose that the that interest rate changes as follows. Age 50 - 54 5% Age 55-64 10% Age 65-74 15% Age 75 - 84 20% What is the largest sum of money they can withdraw at age 84 and still have money for the landscape?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mark Gore plans to get married and he wants to purchase a house for $1 800 000. He entered intoan agreement with National Housing Trust (NHT) to provide 50% financing which involvedmonthly payments over five (5) years at 12% per annum. The remainder of the funds would beborrowed from his commercial bank. Terms of the bank loan are 10% down payment with thebalance to be repaid at 20% interest over three (3) years.A. Calculate monthly payments to NHT if payments are made at the end of eachmonth. B. Compute annual end of year payments to the commercial bank. C. Considering B. above, prepare the amortisation schedule for this loan.
Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $195,000 in 18 years. Assuming that the Cooper-Fowler family could obtain a return of 5 percent, how much would they need to invest annually to reach their goal? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places.
Anna and Andrew open a joint account to a certain cooperative to have a better investment. The total amount they earned in selling rugs was put in their accounts in the cooperative to help their parents. Their total earnings amounting to 5,000.00 will earn an interest rate of 7.5% per year. Help them to compute for the simple interest earned and maturity value, if their money will be invested in 3 years.
Answer the Situation below correctly show your complete solution.I already provided the answer I just need the SOLUTION.( Annuities ) Situation: My cousin , Hershey , is newlywed public school teacher who plans for the education of her future children. Initially , at the beginning of each month , 10 000.00 Php was deposited for 8 years in a bank in Orani. At the end of the month , the investment collects 9 % of annual interest and is compounded monthly. After the last deposit , how much is in the account ? Answer: After the last deposit, Hershey's account has 1 398 561.64 Php.
SOLVE TO HAND LEGIBLE; When a father dies, he leaves his children an inheritance of $3,000,000.00. When the father dies, his children are 5,8,9,12 and 15 years old. Each of the children must receive exactly the same amount of money when they turn 18. The money is deposited in a trust that pays 16% annually, convertible every 8 months: How much money will each of the children receive?
2. Trixy needs to accumulate 780,000.00 for her insurance investment for 5 years. She set up a sinking fund for the said amount that earns 7.5 % interest compounded semi-annually. Construct a sinking fund schedule for her investment.
Bradley set up a fund that would pay his family 3500 at the beginning of every month, in perpetuity.What was size of the investment in the fund if it was earning 5.50% compounded semi-annually?
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will administer it. As you’ve committed to fund a $10,000 scholarship every year beginning one year from tomorrow, you’ll want to set aside the money for the scholarship immediately. At tomorrow’s meeting with your grandfather and the bank’s representative, you will need to deposit$200,000 (rounded to the nearest whole dollar) so that you can fund the scholarship forever, assuming that the account will earn 6.00% per annum every year.
(Please give the detailed solution,thank you) On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P10,000 each for his college tuition fees, starting on his 18th birthday. Interest rate of 13.6% per annum was to be paid on all amounts on deposit. There was also a provision that the grandson could elect to withdraw no annual payments and receive a single lump sum amount on his 25th birthday. The grandson chose this option. 1. How much did the boy receive as the single payment? 2. How much did the grandfather deposit?
George Jefferson established a trust fund that provides $172, 500 in scholarships each year for worthy students. The trust fund earns a 3 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?
Subject - account Please help me. Thankyou.
. James decided to fund a school in Orange County in perpetuity. The first payment will be made three years from today (at the end of year three) and will be $5,320. Each year after that, the school will receive payment from James annually. The payment will increase at a rate of 3% per year after the first payment. If the annual interest rate is 9%, what is the present value of this endowment?

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