Exercise 10-2A (Algo) Determining the present value of a lump-sum future cash receipt LO 10-1Larry Mattingly turned 20 years old today His grandfather had established a trust fund that will pay him $85.000 on his next birthdayHowever Larry needs money today to start his college education, and his father is willing to help. M. Mattingly has agreed to giveLarry the present value of the $85.000 future cash inflow, assuming a 8 percent rate of return. EVofS1 and EVASD (Useappropriate fector(s) from the tables previded.)Required. Determine the amount of cash that Lary Mattingly's father should give him. (Round your final answer to the nearest whole dollervalue.)

Present value or PV is the discounted worth of a future cash flow taking into consideration the time…

Answered: Larry Mattingly turned 20 years old…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What sum of money must be deposited in a trust fund to provide a scholarship of $1550, quarterly for infinite period, if interest is 7.2% compounded quarterly? (Money should be rounded to 2 decimal place) USE ONLY CALCULATOR TO CALCULATE YOUR ANSWERS. PMT VY CAY 1 PV 1550 0.072 4 0.018 86111.11 4
Q4. Thomas deposited 300,000Php now, so that his 3 year old daughter will receive 6 equal amounts of money yearly, starting on her 18th birthday. If money earns 20% compounded annually. How much the girl received yearly? Answer: A = P1,158,244.98
Subject:- finance
4. John makes deposits of 1,100 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity immediate that makes payments of 30,102.71 at the end of each year for 15 years. The annual effective interest rate is 13%. Calculate n. a. n = 24 b. n = 26 n = 28 d. n = 20 e. n = 18 نه ن ن ف ق
Mike wants to donate S5, 000, 000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 5.37% p.a. compounded half-yearly (j2 = 5.37% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places) ? Question 9 Answer a. 313037.32 b 306010.79 с. 153267.24 d. 310649.70
sonia which to establish a trust fund from which her son can withdrew $6000 every six months for 15 years , when he reach 16 years old.At the end of which time he will receive the remaining money in the trust,which you would like to be $25000. The trust will be invested at 6% per annum compounded semi-annual .How large should the trust be ?
You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.11
Trust Fund Grandparents decide to put a lump sumof money into a trust fund on their granddaughter’s10th birthday so that she will have $1,000,000 on her60th birthday. If the fund pays 11%, compoundedmonthly, how much money must they put in theaccount?
Sam wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4-3.81% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (b) Assume that the fund's earnings rate rate has changed from 4-3.81% p.a. to j4-3.56% p.a. one year before the first scholarship payment. How much does Sam need to add to the fund at that time (one year before the first scholarship payment) to ensure that scholarship amount will be unchanged (rounded to two decimal places)? Question 9Answer a. 78309.64 b. 74276.05 C. 71226.96 d. 75395.75
Jeff wishes to accumulate $7,000 in 6 years. Use the appropriate formula to find the sinking fund payment she would need to make at the end of each year, at 7% interest, compounded annually. $942.12 $978.57 O $1,432.12 O $1,468.57
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