A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain the money in trust until it reaches $60,000.00. If the money is invested at 8% compounded quarterly, when will the girl get it?

Q: At the time of her grandsons birth, a grandmother deposits 8,000 in an account that pays 2%…

A: Given, PV=Deposits= $8000   Rate(r)=6.5% (compounded monthly) Monthly rate=2%12=0.001667 No. of…

Q: our grandmother left you an inheritance that pays $440 at the end of each year for a total of 12…

A: Annual Payment = p = $440Number of payment = n = 12Time until First Payment = t = 5Interest Rate = r…

Q: Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He…

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 9 years.…

A: Present value refers to the function of time, the value of money that is used for the computation of…

Q: During a divorce, one partner must pay $5100 in quarterly alimony to their former spouse for 13…

A: The partner must pay $5100 quarterly as alimony for 13 years. Therefore the partner should deposit…

Q: At age 27, Laura deposited $1000 into an IRA, it earns 7 7/8% compounded monthly.

A: In the given problem we have two sections which are being attended below.

Q: On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the…

A: Annuity refers to a fixed amount taht is to be paid at every period until the rest of a person’s…

Q: At the reading of the will, you learn that your inheritance will allow you to receive the amount of…

A: First we need to use present value of ordinary annuity formula to calculate present value of 13…

Q: Your grandparents would like to establish a trust fund that will pay you and your heirs $210,000 per…

A: Present value:Present value is a financial concept that refers to the current worth of a future cash…

Q: A woman was bequeathed a trust fund that pays $50,000 per year to her and to her descendants…

A: Present value= Annual Cash inflows / Interest rate

Q: she leaves the money in this mutual fund how much will she have 13 years after the inheritance?…

A: SOLUTION:-   Formula :-   A=P(1+rn)nt n= type of compounding i.e monthly, daily P= present…

Q: Trish invests $6,000 in her IRA in a bond trust that pays 11% interest compounded semiannually. Sean…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Upon the death of his uncle, Lucien receives an inheritance of $70,000, which he invests for 13…

A: Inheritance received = $70,000Number of years = 13 Interest rate = 6.7%To find: Future value of…

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: A 12-year-old child received an inheritance of $9000 per year. This was to be invested and allowed…

A: Formula to calculate FV:  F = P * ([1 + i]^N - 1 )/i Wherein: P = $9,000 deposited annuallyi =…

Q: how much must your grandparents deposit today?

A: Perpetuity refers to an annuity that has no definite period and goes on for infinity. The annuity…

Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years.…

A:

Q: Jeri purchased an annuity contract for $18,600 ($50/month for 15.5 years). The contract began paying…

A: Annuities are the uniform annual payments that are being paid over the period of time of annuity but…

Q: 4. On Jacob's first birthday, his grandparents present him with a $5000 certificate of deposit (CD)…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Denise has $180,983 saved for her upcoming retirement and will make no further contributions. She…

A: Interest rate = 5% compounded semiannually Annuity amount (A) = $5000 per quarter for 20 years (80…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

Q: George purchased a life annuity for $5,000 that will provide him $125 monthly payments for as long…

A: Gross income of the person means income without taking any exemptions and deductions. After…

Q: Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six…

A: The objective of the question is to find out the initial amount that Janet needs to deposit in the…

Q: A couple plans to save for their child's college education. What principle must be deposited by the…

A: The concept of time value of money will be used here. Money invested in an account grows due to the…

Q: Marcus receives an inheritance of $11,000. He decides to invest this money in a 15-year certificate…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: At the time of her grandsons birth a grandmother deposits 13,000 in an account that pays 6.5%…

A: PV=Initial deposit = 13000   r=rate=6.5% (compounded monthly) n=21 years Monthly rate=r= 6.5%/12 No…

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…

Q: In 18​ years, Maggie Beechwood is to receive ​$100,000 under the terms of a trust established by her…

A: Future value = $100,000 Interest rate = 5.7% compounded continuously Period = 18 years

Q: how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is…

A: Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

Q: Ryan inherited an annuity worth $3,280.16 from his uncle.  The annuity will pay him 5 equal payments…

A: Answer and calculations are given below

Q: Drew receives an inheritance that pays him $53,000 every three months for the next two years. Which…

A: Present value is the current value of a future cash flow at a specific rate of return. It indicates…

Q: Carl is the beneficiary of a $28,000 trust fund set up for him by his grandparents. Under the terms…

A: Annuity = Present Value / PVA of $1

Q: Derek can deposit $19,305.00 on each birthday beginning with his 26.00th and ending with his…

A: Annuity refers to a stream of fixed constant cash flows that occur on a periodic basis. Here Derek…

Q: The Good Fairy has offered to give you $1,000,000 in 20 years. She has volunteered to deposit the…

A: Present value is calculated by following formula:- PV = FV(1+r)n where , PV = Present value  FV =…

Q: A 13-year-old child received an inheritance of $8000 per year. This was to be invested in allowed to…

A: The money's time value concept states that any sum of money received now is greater than the same…

Q: At the time of her grandson's birth, a grandmother deposits $12,000 in an account that pays 3.5%…

A: Amount deposited =$12,000 Interest rate = 3.5/12 = 0.21666667% Years = 21 Terms of compounding =…

Q: ontribute $500 to the alumni fund at the end of each year for the next 7 years. Shannon wants to…

A: Contribution amount=$500Period (n)=7 years Rate of interest=r =2.5%=0.025 Present value=

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4.5%…

A: The value of an account is defined as the total worth of the account for holdings. Cash value is…

Q: a) If you knew Uncle was going to die in 5 years, which option would you choose? How much money…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Mrs. Crawford will receive $9,250 a year for the next 14 years from her trust. Use Appendix D for an…

A: If we get an amount in the future the value of such an amount will change. so the value of future…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.