An inheritance provides you with a $52,000 per year payment for the next 40 years. A 6.00% discount rate, what is the present value of the inheritance? What is the gross amount of the payments?

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: Gregory purchased an annuity policy for $150,000 that will pay him $15,000 per year for 15 years,…

A: There are two questions and only one question is solved. As our protocol is to solve only one…

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

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

Q: Walter is investing $5,000in an account paying 6.75 percent annually for three years. What is the…

A: Principal invested, P = $ 5,000Interest rate, R = 6.75%Time, T = 3 yearsAs a first step, we will…

Q: In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid…

A: Given in the question: Annuity purchased for = $150,000 During the year 2021, Sally has received the…

Q: James plans to receive a monthly annuity of $1514 for the next 28 years as part of his inheritance.…

A: Here,Monthly Annuity (PMT) is $1514Time Period (n) is 28 yearsInterest Rate (r)  is 9.27%Compounding…

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

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

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: Hamad will receive the following payments at the end of the next three years: AED 40,000, AED…

A: Given: Year 1 cash flows = AED 40,000 Year 2 cash flows = AED 50,000 Year 3 cash flows = AED 65,000…

Q: a. What is today's value of the bequest? b. What is the value of the bequest immediately after the…

A: We can determine the value of a growing perpetuity using the formula below:

Q: You want to purchase an annuity on your 30th birthday to provide you with $15,000 semiannual annuity…

A: present value of annuity we need to calculate  pv = 15000[1/0.05 - 1/0.05(1+0.05)40]       =…

Q: The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today.…

A: in this you have to find out present value FACTOR and from that you can get interest rate.

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

A: The objective of this question is to calculate the present value of an annuity due, which is a…

Q: You will receive a ​$80,000 inheritance in 5 years. You could invest that money today at 7​%…

A: Future value = Present value ( 1 + Rate of interest ) TIme

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: You will receive an inheritance of 116034 in 10 years.  If the interest rate is 3.8%, how much is it…

A: Time value of money is one of the important concept in finance. It says that a dollar amount…

Q: Your grandfather left you an inheritance that will provide an annual income for the next 20 years.…

A: The amount that is expected to be received at some future date in lump-sum or as an annuity for a…

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

A: We will use the concept of the time value of money here. As per the concept of the time value of…

Q: If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns…

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

Q: Jake is offered to purchase a perpetuity paying R1000 annually. The required rate of return is 15%.…

A: The price at indifferent to buying or not buying the investment would be R6,666.67…

Q: A trust notifies you that you are entitled a grant that would give you annual payments of $6,200 per…

A: Answer: Calculation of the present value of the grant: The present value of the grant will be equal…

Q: Roy is going to receive a payment of $5.000 one vear from today, He earns an average of 6% on his…

A: Present Value = Future Value / (1+r)^nWhere,r = rate of interest per period 6%n = no. of compounding…

Q: Fifteen years from now, you will be inheriting $45,000. What is this inheritance worth to you today…

A: Future value = $45,000Rate = 8.0%Number of years = 15

Q: Consider an inheritance that pays the beneficiary an annuity of $400 that begins immediately (an…

A: We need to use present value of annuity due formula to calculate present value of cash flows…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $3,000 at…

A: PV is the present value of the annuity,PMT is the payment made at each period (in this case,…

Q: Please help me answer the following time value of money question. Chuck deposited $25 in an account…

A: The value of an amount deposited today after a specific number of years is called its future value.

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…

A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

Q: An inheritance of $400,000 will provide HOW MUCH at the end of each year for the next 20 years, at…

A: Data given:: PV= $400,000 n=20 years i= 7% (compounded annually)     Formula to be used: PV=…

Q: Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity…

A: Given information,Life insurance benefit: Annual payout n-year annuity: Annual annuity 2 n-year…

Q: Your friend Anne is planning to invest $500 each year for five years and will earn a rate of 5.5…

A: According to the time value of money, the money available in the present is worth more than the same…

Q: Will Smith will receive $80,000 5 years from now, from a trust fund established by his father.…

A: Workings: Future value amount = $ 80000 Time period = 5 years. compounded semi annually  = 5 years x…

Q: Consider an inheritance that pays the beneficiary an annuity of $750 that begins immediately (an…

A: Annuity = a = $750Number of Payment = n = 20Interest Rate = r = 3%Annuity for year 14 = $0Payment…

Q: Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of the next…

A: solution Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of…

Q: You are investing in a retirement account and plan to deposit $5,000 per year into the account for…

A: Money has time value because money can be invested elsewhere and money can be earned so money today…

Q: Katie is planning to receive an annuity of $7,545 per year for the next 38 years as part of her…

A: Annuity refers to the amount of payment that will be received or paid by the investors at regular…