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 ?

Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

A: The time value of money helps investors to take investment decisions based on present value, future…

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: Drake is planning to invest $570 in a mutual fund at the end of each of the next eight years. If his…

A: Annual investment (C) = $570Interest rate (r) = 0.06Period (n) = 8 yearsFuture value = ?Future value…

Q: Elsa is planning to set-up an education fund for her daughter. She plans to invest $6,600 annually…

A: Future Value of Annuity: The future value of the annuity represents the worth of the recurring…

Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…

A:

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…

A: Compound interest refers to addition of interest to principal sum of loan or deposit.

Q: How much money should Abigail invest today into a fund that earns interest at 3.75% compounded…

A: Since interest rate is compounded quaterly and payment of annuity is made semi annually, we need to…

Q: Your grandfather placed $5,000 in a trust fund for you.  In 12 years, the fund will be worth $9,500.…

A: Initial Value = $5,000Final Value = $9,500Number of years (n) = 12We need to calculate the annually…

Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: A newborn child receives a $10,000 gift toward a college education from her grandparents. How much…

A: P = $10,000 (initial investment).r=5.5% or 0.055 (annual interest rate as a decimal).n=4 (compounded…

Q: Mia will retire 10 years from now and wants to establish a fund today that will pay $30,000 cash at…

A: We will first calculate the value of the annuity at January 1, year 11 and then discount it for a…

Q: Sarah invests $5,400 in a retirement fund that pays 4.2% interest. Compare the value of the fund…

A: Future value is the value of an investment or asset at a specific date in the future, based on a…

Q: A trust fund for a 8 - year - old grandchild is being set up by her grandfather. The objective of…

A: Annuity can be defined as the series of equal payments into a fund account. In this account interest…

Q: How much should Charles save to put in an education fund for his child? Assume Charles needs $24,000…

A: Given, The amount required is $24,000 term is 10 years Rate is 4%

Q: hank deposits $100,000 into a retirement fund that earns 2.5% annual interest. When will his initial…

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

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.