a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?

Q: How much money would have to be deposited today to accumulate:

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Explain how plan assets accumulate to provide retiree benefits and understand therole of the trustee…

A: Pension expenses are used to report an employer’s annual cost for maintaining an employee's pension…

Q: NN Company operates on a 6-day week, with time and one-quarter for all hours over eight during the…

A: It is the amount to be withheld by an employer from an employee, if the employees' annual income…

Q: What are two ways to measure the obligation for postretirement benefits other than pensions? Define…

A: Post-retirement benefit obligation refers to the present value of benefits that are expected to be…

Q: Which of the following do you not need to take into account when you retire? A) the cost of living…

A: When planning for retirement, you need to consider several factors to ensure that you will have…

Q: Which of the following statements about an accrual annuity is correct? Select one: a. The taxable…

A: Step 1:  The correct statement is:b. The taxable portion of an accrual annuity is higher in earlier…

Q: xplain the concept of time value of money in the context of simple interest. How would you use this…

A: Simple interest is the interest calculated above the original contribution to a savings account.…

Q: Cite instances in your life where Time Value of Money is very much applicable.

A: The time value of money (TVM) is a common principle, which explains that today's money is worth more…

Q: What is the concept of future value within the context of the larger overall concept of the time…

A: The concept of future value is a fundamental component of the broader idea known as the time value…

Q: The term sinking fund is used when we know the sum we need to accumulate and must find the amount of…

A: Introduction: Sinking fund is a type of fund which is used by corporates especially if they want to…

Q: What is the difference between a permanent fund and a private-purpose trust fund?

A: A private purpose fund refers to trust agreements where a principal or income benefits individuals,…

Q: Which of the following refers to the difference between an insurer earns on the fund and it's…

A: An insurer is also in the business to make profits. It happens where there is a difference between…

Q: Will some of the parties receive a preferred return? Will the preferred return be paid from annual…

A: The preferred return is a distribution of profit earned by the organization to their elite class of…

Q: Revenue from property taxes should be recorded in the General Fund: O When received. O When there is…

A: The revenues earned by the government or state from the taxes, fees, interest etc. are recorded in…

Q: True or False? Please explain An annuity provides a stream of cash flows for a defined period of…

A: An annuity is a stream of cashflows over a certain period of time. There are two types of annuities:…

Q: Under a deferred annuity owned by a nongrantor trust, how does the annuity's death benefit operate?…

A: The death benefit of an annuity is a feature that provides a benefit to the designated beneficiary…

Q: How does an executor discover the claims against an estate?

A: A claim is an assert in a case with or without providing evidence or proof.

Q: Social security payments are a form of an annuity payment which is included in your gross estate as…

A: Annuity gross estate refers to the annuity value and payment that is received by the beneficiary for…

Q: The following are exclusions from gross income, except    Proceeds of life insurance policies.…

A: The income earned by an individual before any deductions and allowances is considered Gross Income.

Q: It is the difference between the present value and the worth of money at some time in the future.

A: Money has the power to earnt interest. A sum of money that you put in your bank's savings account…

Q: What are some of the business applications of the time value of money, and what are some of the…

A: Business applications of the time value of money Time value of money has applications in different…

Q: What should be done to find the equivalent present worth of the actual dollar amount?

A: Present value is the concept of discounting future value to bring it to today’s worth.

Q: Planning for estate taxes should address: a. Taking actions to benefit from a loss in property…

A: Planning for estate taxes shows the planning of an individual as how the estate tax should be…

Q: What do we call the process of finding future value? Discounting Compounding Discount interest…

A: This is based on the concept of time value of money.   Amount put aside today or invested today…

Q: Retirement programs, unemployment benefits, financial aid and other expenses that involve transfers…

A: Transfer of money refers to the movement of money from one individual or entity to another, without…

Q: Which of the following is usually not accounted for as an adjustment to a trust's income? Multiple…

A: Trust income includes interest, dividends, rental income, and other earnings.

Q: What are postretirement benefits other than pensions?

A: Pension fund: A fixed sum of money is receivable in future or after the age of retirement, which the…

Q: Which of the following may be ordinary income? Salary Government pension Lottery…

A: Income which come from regular day to day business operations known as ordinary Income

Q: Money accumulated in excess of funds required to secure life's necessities, which may be used for…

A: Managing Particular finances involves  icing that one's income is allocated effectively to cover…

Q: The process that determines the present value of a single payment or stream of payments to be…

A: By computing the present value of payment received in the future we know about the time value of…

Q: Describe the usefulness of a discretionary intervivos trust when used as part of an estate freeze.

A: A discretionary intervivos trust (DIT) can be a useful tool when used as part of an estate freeze.…

Q: the table use to find present value of an annuity is called

A: Annuity is the sum of all the discounted factors from year 1 to n. It will provide the value of…