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.

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.

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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Chris 45 and Alison 46 are marries and they will file a joint return . During the year they earned 82500 wages. They also jad investment income consisting of 200 interest income from a savng account 350 interest income from a certificate of deposit held with another bank 250 interest income from a us treasury 500 tax exempt interest income from municipal bond and 1700 in ordinart dividends from a mutual fund what amout will cris and allison report for taxable interest in their 1040
Of Roger's $12,000,000 federal gross estate, his will directs one specific bequest of $8,000,000 to his wife, Lori, and directs the debts and other expenses of $1,000,000 to be payable from the residuary of the estate. The residuary heirs are Roger's children. What is the amount of the marital deduction included on Roger's federal estate tax return? Question 16 options: $12,000,000 $ 8,000,000 $7,000,000 $0
Flowers, a married taxpayer, purchased an annuity for $64,400 that will pay $700 per month over the life of Flowers and Flowers' spouse. At the time of purchase, the couple's joint life expectancy was 23 years. Flowers received payment beginning April 1, Year 1, amounting to $6,300 in the first year of the annuity contract. How much is includable in Flowers' gross income in the first year? $0 $2,100 $4,200 $6,300
Laura and her husband Kevin have been married for 25 years and are planning to retire this year. Kevin's PIA is $13000. Laura's PIA is $3000. Assuming they are both at full retirement age, what is their maximum joint retirement benefit under Social Security? $16000 O $13000 $19500 O $26000
vi.3
Jane and Sue are twins. Today is their 45th birthday. They both invested in a retirement account with 9 percent compounded annually. Jane began to deposit $60000 per year on her 24th birthday for a total of 8 annual deposits, whereas Sue started her first deposit on her 35th birthday, for a total of 20 annual deposits. They both then do nothing by putting aside the account balance till their planned retirement age. (answer to 2 decimal places) a)Calculate Jane’s current retirement account balance on her 45th birthday. b)Based on your answer in a), how long from now does Jane need to wait to accumulate $5.5 million in her retirement account?c)At the time when Sue places her 20th annual deposit , how old will Sue be?d)If Sue planned to accumulate $5.5 million on her 65th birthday, calculate the amount of her annual deposit.
Nancy, who is 59 years old, is the beneficiary of a $235,000 life insurance policy. What amount of the insurance proceeds is taxable under each of the following scenarios? Note: Do not round any intermediate division. Round your final answer to the nearest whole dollar amount. a. She receives the $235,000 proceeds as a lump-sum payment. b. She receives the proceeds at the rate of $4,525 a month for five years. c. She receives the proceeds in monthly payments of $1,370 over her remaining life expectancy (assume she will live 25 years). d. Use the information from (c). If Nancy lives beyond her 25-year life expectancy, what amount of each monthly payment will be taxable in the 26th year? a. Taxable insurance proceeds b. Taxable insurance proceeds per month c. Taxable insurance proceeds per month d. Taxable insurance proceeds per month $
Ashvinn
vi.3
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Sam and Sung are equal joint owners in a property which they rent out. Because Sam is unemployed, he spends more time at the property to help do maintenance and gardening. Because Sung earns $200,000 per year from his job as an accountant, they come to a private agreement to divide the annual rent of received from their tenants, as follows: Sam will receive a salary payment of $20,000, after which the remainder will be split 60% in favour of Sam and 40% in favour of SungDuring the 2020 tax year, they incurred the following expenses on the property which they hope to claim as deductions: Council rates: $3,000Land Tax: $12,000Bank interest on the loan taken out to finance the purchase of the property: $80,000Required: If the total rent received for the 2020 tax year was $177979 calculate Sam's Assessable Income (assuming he has no other income sources).
4. Ms. JK recently made a gift to her 19-year-old daughter, Alison. Ms. JK's marginal income tax rate is 37 percent, and Alison's marginal income tax rate is 12 percent. In each of the following cases, compute the annual income tax savings resulting from the gift. a. The gift consisted of rental property generating $19,100 annual rental income to its owner. b. The gift consisted of a $4,625 interest coupon from a corporate bond owned by Ms. JK. c. The gift consisted of a $2,200 rent check written by the tenants who lease rental property owned by Ms. JK. d. The gift consisted of a corporate bond paying $13,300 annual interest to its owner.

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