of 3 years? 8. Will Smith will receive $80,000 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?
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- please answer4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?4) Jones purchased a perpetuity today for 7000. He will receive the first annual payment of 200 five years from now. The second annual payments will be 200 plus an amount C. Each subsequent payment will be the prior payment plus an additional constant amount C. If the annual effective interest rate is 4%, find C.
- Your grandparents would like to establish a trust fund that will pay you and your heirs $175,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.4 percent, how much must your grandparents deposit today?A trust notifies you that you are entitled a grant that would give you annual payments of $6,200 per year for ten years. The first payment will be made to you one year later (at the end of first year). The annual interest rate is 10% (APR). What is the present value of the grant?A
- Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?Al Darby wants to withdraw $20200 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the first year if the fund earns 12% compounded annually? O $20200 divided by the present value of a 5-year, 12% ordinary annuity of 1. $20200 times the future value of a 5-year, 12% ordinary annuity of 1. O $20200 times the present value of a 5-year, 12% ordinary annuity of 1. O $20200 divided by the future value of a 5-year, 12% ordinary annuity of 1.Mo will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual payment for the next 50 years. If the interest rate is 7.8% how much more are Mo's payments worth? 1. $10,706.21 2. $9,559.11 3. $9,877.55 4. $9,081.16 5. $10,196.39 Please show step by step calculation I am having difficulty understanding this question. Only typing answer
- Consider an inheritance that pays the beneficiary an annuity of $400 that begins immediately (an annuity due) and then annually in year 1 through year 16 (for a total of 17 years) with one exception - the payment in year 11, and only 11, is not $400 but $0. Using an interest rate of 8%, determine the present value of this cash flow stream9. Daniel Plans to fund his individual retirement account, beginning at the end of each year with 20 annual deposits of P2,000, which will continue for the next 20 years. If he can earn an annual compound interest rate of 8 percent on his deposits, what will be the amount in the account upon retirement?Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from now. Assuming a 5% annual interest rate, what is the value of this annuity? Choose the closes. a) $150,000 b) $103,797 c) $124,622 d) $77,217