Your grandparents would like to establish a trust fund that will pay you and your heirs $210,000 per year forever with the first payment 13 years from today. If the trust fund earns an annual return of 41 percent, how much must your grandparents deposit today?

Q: how long in years and months will she receive the payments

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A: First year retirement fund deposit (D1) = $180000 * 11% = $19800 Growth rate (g) = 2% n = 13 years r…

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A: Variables in the question:Annual payment (P)=$1000Growth (g)=8%Interest rate(r)=11%

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Q: Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the…

A: Solution:- When an amount is invested, it earns interest.  The amount initially invested is called…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

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Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

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Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

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: Jerry wishes to retire at age 65. He wishes to receive an annuity that pays $50,000 per year…

A: Annuity refers to the amount to be withdrawn in the future for a specific time period. Present worth…

Q: Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest…

A: Step 1 An inflow or outflow amount that happens at each period of a financial stream is known as a…

Q: artin wants to provide money in his will for an annual bequest to whichever of his living relatives…

A: The present value of growing perpetuity is calculated by

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

A:

Q: Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive…

A: Present value= Annual cash flows / Discounting rate= 96666.666666666666667= 96666.67 Approx

Q: Your parents would like to establish a trust fund that would pay annual payments to you and your…

A: In this question we require to calculate the present value of perpetuity as we will receive $500000…

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A: The computation is as follows:

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A: Present Value is the current worth of an amount to be received in future. To calculate the present…

Q: Your grandfather placed $5,000 in a trust fund for you.  In 12 years, the fund will be worth $9,500.…

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Q: A woman decides to invest ​$30003000 in an IRA CD at the end of each year for 1010 years. If she…

A: The objective of the question is to calculate the future value of an annuity. An annuity is a series…

Q: In order to fund his son’s higher education, Abdullah decided to invest $1000 quarterly for 6 years…

A: Future value is the worth of the current amount in future specified date at given interest rate. The…

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A: The future value is the amount that will be received at the end of a certain period. In simple…

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A: Here, Amount of annuity = $200,000 Interest rate = 11% Years to death after retirement = 30 years…

Q: A newborn child receives a $10,000 gift toward a college education from her grandparents. How much…

A: P = $10,000 (initial investment).r=5.5% or 0.055 (annual interest rate as a decimal).n=4 (compounded…

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A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: Your grandmother invested $1,000 for you the day you were born. How much will this investment be…

A: Data given: Principal (PV)=$1000 n=30 years Rate= 6% (compounded quarterly)   Required: FV of this…

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%

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Q: Mary is going to receive a 31-year annuity of $8,600 per year. Nancy is going to receive a…

A: Time = t = 31 years Interest rate = r = 9% Mary annuity = ma = $8600 Nancy perpetuity = np = $8600

Q: At age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at…

A: Compound = Monthly = 112Amount Invested in Funds = pv = R20,000Time until his death = t = (65 - 60)…

Q: What is the maximum amount this couple can contribute to a Roth IRA?

A: Roth IRA is a specific retirement account in which the individual has to pay taxes on the amount…

Q: One of the categories of options available to investors and speculators is LEPOs. Assuming 7.00 per…

A: Derivatives refer to contract that derives their values from an underlying asset. Future contacts,…

Q: of 7 percent compounded annually, what is the present value of your uncle's generosity?

A: Present value or PV refers to the value of future money expressed in today’s terms.

Q: Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per…

A: The annual payment by trust is $125,000 forever. The annual rate of return is 2.4%. The period of…

Q: Required: a. Calculate the standard deviation of returns of each service provider. b. Which service…

A: In finance we use standard deviation as a measure of risk. Now standard deviation of returns is a…