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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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
![A. Trust
Scenario 1
Mr. Anson is a 40-year-old family man with two
(2) kids ages five(5) and six(6) years old. He
summoned his lawyer, Mr. Arenas to set-up a
trust fund for his kids in the amount of P 3M
which will be maintained with his depository
bank, Banco de Oro. He strictly specified that
the amount will only be used for the kid's
college education. The terms of the trust can be
changed by Mr. Anson anytime.
Questions:
1. What type of trust is applicable in this
situation?
2. Identify the grantor(trustor), trustee, and
beneficiaries](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe87f00dd-b701-4024-81c7-fcafe6d7a27b%2F1aa297ed-060c-42aa-b766-38675d51a3a2%2Fl1j0pfi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A. Trust
Scenario 1
Mr. Anson is a 40-year-old family man with two
(2) kids ages five(5) and six(6) years old. He
summoned his lawyer, Mr. Arenas to set-up a
trust fund for his kids in the amount of P 3M
which will be maintained with his depository
bank, Banco de Oro. He strictly specified that
the amount will only be used for the kid's
college education. The terms of the trust can be
changed by Mr. Anson anytime.
Questions:
1. What type of trust is applicable in this
situation?
2. Identify the grantor(trustor), trustee, and
beneficiaries
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