On a whim you purchased a scratch−off lottery ticket at the gas station. It must have been your lucky day because you won $3,000,000. Being logical and rational you decide to invest the money at 5​% for 14 years until you are ready to start a family. At the end of 14 ​years, how much will your investment be​ worth? -the future value of​ $1 table -the future value of annuity of​ $1 table

Q: You are 20 years old today. You want to retire at age 50 and have $4 million at that time. Assume…

A: The present value of money refers to the concept that money available in the future is worth less…

Q: Through your career, you have saved-up $1,150,000. You are now ready to retire. You discuss your…

A: Present Value = pv = $1,150,000Annuity = pmt = $68,000Time = nper = 25 Years

Q: Your sister just deposited $6,500 into an investment account. She believes that she will earn an…

A: The objective of the question is to find out how much more you need to deposit today in order to…

Q: You expect to receive $11,000 at graduation in two years. You plan on investing it at 8 percent…

A: Given Information Present Value =$11,000 Future Value =$1,00,000 Interest rate = 8%

Q: 4. You want to have a retirement fund of $200,000 available when you retire. You invest in an IRA to…

A: The sum that remains after future cash amounts have been discounted to a later date is most likely…

Q: Expecting to retire in 20 years, you invest $5000 today in your retirement account which pays an…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: Your client is 32 years old. She wants to begin saving for retirement, with the first payment to…

A: Here,ParticularsIf the retirement age is 65If the retirement age is 70Annual deposits (PMT) $…

Q: Assume you are currently 25 years old and just received an inheritance of $1,000,000 from a wealthy…

A: Money have time value that means more money would be required in the future for same amount and this…

Q: How much money would you need to deposit every year for 40 years to become a millionaire if the…

A: Given, The amount required in 40 years is 1,000,000 Interest rate 12%

Q: 2. Annuities - Johan, a sophomore management student, receives a call from an insurance agent who…

A: Annuity is an arrangement of receiving or paying payments in which face value of each payment is…

Q: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

Q: Calculating Annuity Payments You want to be a millionaire when you retire in 40 years. How much do…

A: Retirement period = 40 yearsInterest rate = 10.2%Amount = $1,000,000

Q: You have just been notified that you will receive $8,700 a year for the next 17 years from an…

A: We should accept the amount today in exchange for annual receipts would be the present value of the…

Q: To help their son buy a car on his 16th birthday, a boy's parents invest $7400 on his 10th birthday.…

A: Future value in case of continuous compounding is calculated as follows:-FV = A * ertwhereFV= future…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: nd wants to save the college tuition fees his child will need in ten years by starting with a…

A: Future value of the amount is that amount being deposited and amount of compounded interest…

Q: Your older sister deposited $100,000 today at 12.5 percent interest for 10 years. You would like to…

A: Solution: An amount deposited somewhere, earns interest on it. The amount deposited in the beginning…

Q: Raghubhai

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

Q: You expect to receive $3.500 upon your graduation and will invest your windfall at an interest rate…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: answer using TVM calculations and formulas Today Dante and Sharon had their first child. All of the…

A: Initial deposit (I) = $23,000 Monthly interest rate (r) = 0.00266666666666667 (i.e. 0.032 / 12)…

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: a.Future Value of annuity = $320,000 Period, n = 39 years Interest rate per period, r = 7% Using the…

Q: 1. Paulo won the lottery. He is offered a series of payments $100,000 per year for 10 years. What is…

A: The concept of money's time worth reveals that any sum currently is worth more as compared to the…

Q: X Your answer is incorrect. Chris Anderson plans to save $5,716 every year for the next eight years,…

A: Savings every year = $5,716Time period = 8 yearsInterest rate = 12%To find the savings after 8…

Q: Can you show me how this is done?   Ava Darling plans to buy a house in 10 years and needs $17,446…

A: The principle of present value implies that a sum of money today is worth more than a sum of money…

Q: 11. Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs…

A: Annual payment (A) = $25000 Policy cost = $645000 Let r = Interest rate

Q: You are planning to save for retirement over the next 20 years. To do this, you will invest $900 a…

A: We will apply the TVM (time value of money) concept here.Value or worth of money changes with…

Q: What annual contributions to the retirement fund will allow you to receive the $18,000 annuity?

A: An annuity is a fixed and defined set of payments to be received for a certain number of years, It…

Q: 6) Your daughter is born today, and you want her to be a millionaire by the time she is 35 years…

A: To given solution-Explanation:Complete solution.

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.