Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reaches 16 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be?

Sandra plans to retire and can receive a lump sum of $26,376 from her pension provider. She decides to invest of the lump sum for 8 years and use the rest for 3 travelling. Her bank account pays 4.99% compound interest per annum. How much interest will Sandra receive from this investment after 8 years? Round your answer to the nearest thousand dollars. %24

James invests $20,000 on his 25th birthday and plans to add $2,000 to his investment each year until his 40th birthday. The interest rate is 5.5% compounded annually. a) What will be the value of Clark's investment on his 40th birthday? b) How much will his investment have earned by his 40th birthday?

Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?

A woman is planning for retirement in 30 years and decides she can deposit $6,000 each year on December 31 into a retirement savings plan that she expects will pay 6% interest.  In 20 years she also expects to receive a small inheritance of $12,000 that she can also put into her retirement fund. The woman anticipates that her retirement fund will need to last 20 years; she estimates that she will need $60,000 at the end of each year in retirement to cover her living expenses. Her plan is flawed.  How much extra does she need to save every year (rounded to dollars and cents) to achieve her goals? (Do not round interim calculations)

Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum.   Required:   How would you define the amount of $30 000 and $150 000 in terms of the time value of money?                                                                                                                ANSWER a (i): (answer box will enlarge as you enter your response)   How long will she have to wait until she reaches the goal of $150 000?                                                                                                               ANSWER a (ii):   Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…

Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year.   a. $266,770.46     b. $556,561.79     c. $598,303.93     d. $517,731.90     e. $248,158.57

Una Day is planning to retire in 11 years, at which time she hopes to have accumulated enough money to receive an annuity of $21,000 a year for 16 years of retirement. During her pre-retirement period she expects to earn 12 percent annually, while during retirement she expects to earn 14 percent annually on her money. What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night? (Use a Financial calculator to arrive at the answer. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Annual contribution $

Jennifer establishes an investment account to pay for college expenses for her daughter. She plans to invest X at the beginning of each month for the next 20 years. Beginning at the end of the 17th year, she will withdraw 55,000 annually. The final withdrawal at the end of the 20th year will exhaust the account. She anticipates earning an annual effective yield of 11% on the investment. Calculate X. 276.80 307.70 317.60 346.20 349.10

Your grandparents would like to establish a trust fund that will pay you and your heirs $135,000 per year forever with the first payment 12 years from today If the trust fund earns an annual return of 26 percent, how much must your grandparents deposit today?