please use ba II where possible Drew receives an inheritance that pays him $53,000 every three months for the next two years. Which of the following is closest to the present value​ (PV) of this inheritance if the interest rate is 8.3​% ​(EAR​)?   A. $310,421   B. $388,027   C. $465,632   D. $424,000

Q: ohn will have to wait three years to receive an inheritance. After the three years, he will receive…

A: given, semi annual payment for deferment period = 3 years Interest conversion period per year =2…

Q: Q1: Randall receives a $4,200 monthly payment from a registered annuity. He calculates that 65.2% of…

A: Return of Capital: Return of capital alludes to head installments once again to "capital…

Q: On 1 January 2023, Sarah borrowed £300,000 to buy a house. She pays a fixed rate of interest 6% per…

A: A sum of money borrowed for a specific purpose indicates a loan. The loan taken to purchase a home…

Q: Dante purchase two perpetuities, X and Y, that have the exact same value to him today: - Perpetuity…

A: An annuity is a series of periodic payments made/received in exchange for a lump sum payment. It is…

Q: Paul Havlik promised his grandson Jamie that he would give him $6,200 6 years from today for…

A:

Q: Ken received $25000 form an annuity he purchased eight years ago.  He purchased the annuity, to be…

A: Form 1040 is used by an individual taxpayer, to file their taxes with the IRS.

Q: what is the future value of his investment cash flows at the end of three years? (Round to two…

A: Future value means the value of the assets at a specified time in future. It is very important for…

Q: Derek will deposit $2,713.00 per year for 16.00 years into an account that earns 10.00 %, The first…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then…

A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…

Q: Taylor deposited $600 at the end of every three months into an investment for the past 5 years. The…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Jessica owes $75000 to be amortized with equal semi-annual payments over 3 years at j2 = 6%. What is…

A: Step 1 A fundamental concept in finance is the time value of money. A sum of money in your…

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: y that will pay him $ 480000 at the end of each of the next twenty years. Blue Spruce has offered to…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: ack inherited a perpetuity-due, with annual payments of 10,000. He immediately exchanged the first…

A: PV=PMT/InterestWhere PV = Present valuePMT=Annual payments of $10,000Interest=Effective interest…

Q: An heiress receives an income stream from a will at a rate of f(t) = 30,000e0.023 dollars per year.…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

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: If Rachel invest 1700 today in a account that pays 6 percent interest compounded annually how long…

A: The answer is in the explanation.Explanation:To solve this problem, use the formula for compound…

Q: 4. On Jacob's first birthday, his grandparents present him with a $5000 certificate of deposit (CD)…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: mber sold her personal property in 2019, with details as follows: Cost…

A: Here  it is important to know that Mortgage assumed by the buyer means, buyer is taking over the…

Q: Annuity A. Edward purchased an annuity for $30,000.  The annuity will pay Edward $700 per month for…

A: A Exclusion ratio: 35.71% Excluded Amount in a year: $2,999.64 Taxable Amount in a year: $5,400.36 B…

Q: A person sells some property She will be paid a lump sum of $80.000 in 4 years. Until then, the…

A: 1. Note: In the given question it is assumed that given interest is per annum interest rate.…

Q: Bert receives an inheritance of $57,500 and decides to invest his m an account that will pay 3.7% if…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated on…

Q: Salvatore has the opportunity to invest in a scheme which will pay $7,500 at the end of each of the…

A: Net Present Value:Net present value (NPV) is the difference between the present value of inflows of…

Q: Amber sold her personal property in 2019, with details as follows: Cost…

A: Working Note :- Particulars Amount P Amount P Cost of the land  [a]   600,000…

Q: rah will receive a perpetual annul income of $50,000 on her retirement, commencing in 3 years time.…

A: Perpetual income is income forever and there is no gap in income and income are for indefinite…

Q: Krissie wishes to bestow her youngest son Bim P200,000 ten years from now. What amount should she…

A: Value at end of 10th year = P200000 Interest rate for first 5 year = 6% Interest rate for next 5…

Q: ) Larry wins $80,000 in the lottery. He invests the total amount in a GIC that earns him interest of…

A:

Q: Drew receives an inheritance that pays him $53,000 every three months for the next two years. Which…

A: Present value is the current value of a future cash flow at a specific rate of return. It indicates…

Q: How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10…

A:

Q: Assume that your grandmother has sold her house on 31.12.2020. The house was partially paid for with…

A: The problem case wants to calculate the interest income earned in 2023 from the bond issued at the…

Q: You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning…

A: Here, Inheritance Amount is $123,456 Monthly Payment for 20 years is $800 Interest Rate is 2.5%…

Q: A man is left with an inheritance from his father. He has an option to receive P2M at the end of 10…

A: An annuity is a type of investment contract or financial instrument that gives the receiver, or…

Q: A.Jenevive  who is in the 36 percent tax bracket can earn 9 percent annually on her investments in a…

A: Solution:- We know,  Future value = Present value x (1+r) ^n where r = periodic interest rate n=…

Q: Zayden will receive an inheritance of R850 000 four years from now. His discount rate is a 9,2%…

A: Step 1:We use the formula:A=P(1+r/2)^2nwhereA=future valueP=present valuer=rate of interestn=time…

Q: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Calculate the monthly payment as follows: Monthly payment is $1527.73.

Q: Kenneth is expected to receive an inheritance of about $250,000 from his grandmother's estate in a…

A: A borrower pays to the lender the interest and original sum borrowed in the form of regular…

Q: A lottery winner will receive $1 million at the end of each of the next twelve years. What is the…

A: The question gives the following information:

Q: Noel purchases a house and gets a 30-year mortgage for $195,000 at 5.5 % APR. In addition to the…

A: The escrow account is normally required by the mortgage lender and it is requested by the borrower.…

Q: Amber sold her personal property in 2019, with details as follows: Cost…

A: An installment sale is agreement. In this agreement seller allow to buyer to payments over specific…

Q: Amber sold her personal property in 2019, with details as follows: Cost…

A: Selling price Mortgage assumed by the buyer                  350,000 add)Installment in2019…

Q: A family takes a $275,000 20 year mortage at 3.50% annually compounded monthly. . Compute their…

A: Here, Mortgage Amount is $275,000 Interest Rate (r) is 3.5% Time Period (n) is 20 years Compounding…

Q: Your rich uncle dies, leaving you a life insurance policy worth $120,000. The insurance company also…

A: We need to calculate present value of annuity due( payment due at beginning) offered to you by…

Q: Kim takes her inheritance of $26000 and invests it at j26 = 7%. %3D (a) How many full biweekly…

A: The question can be solved as follows:

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.