True/FaheTrueO FaheQuestion 4Carol and John shared equally inan inheritance Uhing his inheritance, John immediutely boughta 20-year annuity immedate with aannual payment of $2.000 each Carol put her inheritance in an investment fund earming an annual effective interest rate of 5. Two yearmlater. Carol bought a 10 year ansuity-due with annual payment of Q The present value of both annuities was determined using an annualelfective interest rate of 4. Calculate Q$3.55$342$3.929$3.988

Given Information: Person J immediately bought annuity of 20 years Annual payment of Person J is…

Carol and John shared equally inn inheritance Uhing his inheritarce, Juhn inmediutely bought a 20-year nty inedute witha anal payment of $2.000 each Carl put her inheritance in an investment fund earming an anl effective interet ae of S Twe year later, Carol bought a 10-year annuity due with annal payment of Q The present valle of both annites wan determined using effective interest rate of 4. Caloulate Q ann $3.553 $3.929 $3.588

Carol and John shared equally inn inheritance Uhing his inheritarce, Juhn inmediutely bought a 20-year nty inedute witha anal payment of $2.000 each Carl put her inheritance in an investment fund earming an anl effective interet ae of S Twe year later, Carol bought a 10-year annuity due with annal payment of Q The present valle of both annites wan determined using effective interest rate of 4. Caloulate Q ann $3.553 $3.929 $3.588

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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Jose owned Pedro the sum of P 5,000 due on Dec. 31, 1975 and P 6,000 due on Dec. 31, 1998. However Jose was unable to pay as agreed and was allowed to make a payment of P 8,000 on Dec. 31,2000 and a final payment of P 5,380 on Dec. 31, 2001. Determine the annual rate of interest on this payment? Pls show written solution with cashflow diagram
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Carl made the following transfers during the current year. What are Carl’s taxable gifts for the current year? 1.Transferred $900,000 in cash and securities to a revocable trust, life estate to himself and remainder interest to his three adult children by a former wife. 2.In consideration of their upcoming marriage, gave Maria a $90,000 convertible. 3.Purchased a $100,000 certificate of deposit listing title as “Carl, payable on proof of death to Maria.” 4.Established a joint checking account with his now-wife, Maria, in December of the current year with $30,000 of funds he inherited from his parents. In January of the following year, Maria withdrew $18,000 of the funds. 5.Purchased for $80,000 a paid-up insurance policy on his life (maturity value of $500,000). Carl designated Maria as the beneficiary. 6.Paid $23,400 to a college for his niece Mindy’s tuition and $11,000 for her room and board. Mindy is not Carl’s dependent. 7.Gave his aunt Betty $52,000 for her heart bypass…
In the current year, Larry gives $50,000 cash and $30,000 of stock to Mike. He also gives $40,000 of tax-exempt bonds to Angela. His wife , Susan , gives $200,000 of land to Angela and $20,000 cash to Pete. Assume the couple elects gift splitting for the current year. Larry's taxable gifts reported on his gift tax return total A. $170,000 B. $130,000 C. $125,000 D. $30,000
6. By the conditions of a will, the sum of P25,000 is left to a girl to be held in trust by her guardian until it amounts to P45,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly? Ans, 7.42 years 7. At a certain interest rate compounded semiannually, P5,000 will amount to P20.000 after 10 years. What is the amount at the end of 15 years? Ans. P40.029.72
None
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Susan won the lottery today which will pay an annual perpetuity of X, with the first payment occurring five years from today. The perpetuity has a present value of 100,000 based on an annual effective interest rate of 1% for the first ten years and 5% for all years thereafter. Calculate X. A. 4,100 B. 4,224 C. 4,357 D. 4,401 E. 5,696
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28. John Jay paid interest expense of $12,000 on his personal residence original first mortgage this year and $5,000 on a $100,000 home equity credit line also secured by a mortgage on his home Half of the home equity credit line loan proceeds were used to put a new roof on the home and the other half was used to purchase a new car. Assuming the acquisition and home equity limits are not exceeded, how much of the total interest expense is deductible on John's Schedule A as qualified home mortgage interest? O$17,000 O$14,500. O$12,000 29 The Browns borrowed $30,000, secured by their home, to pay their son's college tuition. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan is treated for itemized deductions as ODeductible points. ONon-deductible home equity (mortgage) interest. ODeductible home equity (mortgage) interest.
Mr. and Mrs. Marasigan bought a house and lot worth P675,000.00 at Villa San Mateo. They made an initial payment of P60,000.00 How much was the yearly amortization if they agreed to pay for 15 years?A. P40,000.00 B. P41,000.00C. P45,000.00 D. P48,000.00
Pedro bought a 1.5 Million 10-year life insurance policy for a total premium of P600,000. In the 6th year, Pedro died and his heirs received 1.5Million from the insurance company. Total premiums paid by Pedro was 360,000. How much is the return OF capital? How much is the return ON capital? How much is the TAXABLE INCOME? Choices for the three questions are: 360,000 1.5 Million zero 1,140,000

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