In 18​ years, Maggie Beechwood is to receive ​$100,000 under the terms of a trust established by her grandparents. Assuming an interest rate of 5.7​%, compounded​ continuously, what is the present value of Maggie​'s ​legacy?   The present value of the legacy is ​$  ​(Round to the nearest cent as​ needed.)

Q: Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity.…

A: Annual rate "r" is 5% number of compounding "m"= 4 Present value of the donation amount = $1000000…

Q: 25. Ms. Bates purchased an annuity contract that pays her $120 per month beginning March 1, 2020.…

A: Expected Return= $26,000Annuity cost= $16,900Payment per month= $120Number of months= 10Required:…

Q: eives a ​$8,000 gift toward a college education from her grandparents. How much will the ​$8,000 be…

A: Future value is value of the principal amount of $ 8000  after 18years at 5.6% compounded quaterly.…

Q: The will of Don José Luis, who has just died, specifies that the beneficiary of his 15,000,000.00…

A: Insurance Amount = 15,000,000 Interest Rate = 24%/12 = 2% per month Periodic Amount = 250,000…

Q: At the age of 40, James purchased a 20-year endowment insurance for 1,000,000. If premium payments…

A: Endowment insurance is a type of life insurance policy that combines elements of protection and…

Q: Mr. Larsen's will directed that $209,000 be invested to establish a perpetuity making payments at…

A: Investment amount = $209000 Let the monthly payment = M r = 6% per annum = 0.5% per month Investment…

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: Al Ferris has $70,000 that he wishes to invest now in order to use the accumulation for purchasing a…

A: Approach to Solving the Question:1. Define Decision Variables:Ai: Amount invested in Investment A at…

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: Hector will receive 1,500 at the end of each year for 5 years. Jill will receive 1,000 at the end of…

A: Annuity refers to a stream of constant and periodic cash flows.   For example a sum of $100 being…

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain…

A: Future Value = Future value is what money is expected to be worth in the future. Future Value…

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

Q: By the condition of a will, the sum og P25,000 is left to a girl to be held in trust by her guardian…

A: The time value rule states that a sum of money available in present is worth more than the same…

Q: fran purchased an annuity that provides 6200 quarterly payments foe the next 10 years. The annuity…

A: Annuity Extension ratio (Return on capital per payment) = Cost of annuity / (Number of years* 4…

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: Mr. Dayani purchases an annuity with funds from his savings account on January 1, 2018. The annuity…

A: Annuity payment refers to an amount that is paid at every period for the accumulation of the amount…

Q: Donna is 40 years old today and she wishes to accumulate $2,240,000 by her sixty fifth birthday so…

A: SOLUTION- LET THE AMOUNT TO BE DEPOSITED ANNUALLY =X RATE OF INTEREST =6% P.A CURRENT AGE =40 YEARS…

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: William North has just inherited $1,066,000 which he would like to use as part of his retirement…

A: Money received today is worth more than money that will be due at some point in the future. The…

Q: An inheritance provides you with a $52,000 per year payment for the next 40 years. A 6.00% discount…

A: a) Present value annuity (PV) of an inheritance payment (P) of $52,000 for a period (n) of 40 years…

Q: Carl has purchased an annuity to be paid at the end of each month for 20 years at an effective…

A: Present Value of Annuity = 200,000 USD YEars = 20 Terms(n) = 20*12 = 240 Rate of Interest(r)  =4%/12…

Q: Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity.…

A: Donation amount=$1000000Interest rate=4.12%Annual scholarship after 2.5 years.

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Noel has $330,000 with which to purchase an ordinary annuity delivering monthly payments for 25…

A: In ordinary annuity payments are made at the end of period and regular over the period of the…

Q: Nancy Jackson just learned that she received an inheritance from her grandmother. The inheritance…

A: The question is related to Time Value of Money. The value of inheritance would be calculated using…

Q: William North has just inherited $817,000 which he would like to use as part of his retirement nest…

A: According to the time value of money theory, money received today is worth more than money that will…

Q: Jennifer invests $2,400 at the end of each year for 11 years in an ordinary annuity at 10% interest…

A: Periodic Payment = $2,400 Time Period = 11 Years Interest Rate = 10%

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: Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate. The…

A: Total number periods in annuity are 20 Purchase price of annuity is $100,000 Effective interest rate…

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

A:

Q: 4. On retirement, Gilbert finds that his share of a pension fund is P1 500 000. If the fund is…

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: A woman decides to invest ​$30003000 in an IRA CD at the end of each year for 1010 years. If she…

A: The objective of the question is to calculate the future value of an annuity. An annuity is a series…

Q: At the beginning of each period for 11 years, Merl Agnes invests $410 semiannually at 4%. What is…

A: The future value of annuity due is the total value of a series of payment made at the beginning of…

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: By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her…

A: Time will tell worth of cash changes as it complete long duration of Investement. it will tell value…

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.