Marion's grandfather's will established a trust that will pay her $1,800 every three months for 12 years. The first payment will be made five years from now, when she turns 20. If money is worth 6.8% compounded quarterly, what is today's economic value of the bequest? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Present value $4
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- Abe Washington sold some property in Oregon and will receive $40,000 in 5 equal payments of $8,000 at the end of each year from today. What is the present value of these future payments at an interest rate of 9% compounded annually? Round answer to the nearest dollar.Abe Washington sold some property in Oregon and will receive $40,000 in 5 equal payments of $8,000 at the end of each year from today. What is the present value of these future payments at an interest rate of 9% compounded annually? Round answer to the nearest dollar. show in excel if possibleMrs. Crawford will receive $9,250 a year for the next 14 years from her trust. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.If a 8 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Arich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $4,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 3% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 15% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest doliar.)IRA Anne Wright decides to invest $4000 in an IRACD at the end of each year for 10 years. If she makesthese payments and the certificates all pay 6%,compounded annually, how much will she have atthe end of the 10 years?Saul Goodman tells you that you inherited $250,000 from your Great Aunt Birgit. Under Saul's advice, you invest your inheritance into an ordinary annuity that pays out $5,000, monthly, et 4 compounded monthly. How many vears will it take for the inheritance to be depleted? Round vour answer to 2 decimal olaces.
- Time value of money:- A part) Your relative has promised to remember you in her will. You will receive $1,000,000 thirty-nine years from today. If the annual interest rate is 11 percent, what is the promised inheritance worth today? B part) Twenty years ago, your grandmother opened a bank account in your name. She deposited $1,000 and has let all of the interest accumulate. You plan to retire thirty years from today. If the annual interest rate is (was) 9 percent throughout, how much money will be in the account when you retire?Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive payments of $11,600 a year forever, starting when he retires. If he can earn 12.0 percent annually, how much does your grandfather need to invest to produce the desired cash flow? (Round answer to 2 decimal places e.g. 15.25.)Scarlett is considering investing $10,000 she will receive from a trust fund when she turns 25 years old. If she invested the money for three years at 4% per year, compounded annually, what would her investment be worth at the end of three years? Note: Assume this problem uses Compounding Interest (compounded annually), NOT Simple Interest. $10,400 $11,200 $11,249 O $10,816
- Paul Havlik promised his grandson Jamie that he would give him $6,200 6 years from today for graduating from high school. Assume money is worth 6% interest compounded semiannually. What is the present value of this $6,200? (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Present valueMary is going to receive a 33-year annuity of $9,800 per year. Nancy is going to receive a perpetuity of $9.800 per year. If the appropriate interest rate is 11 percent, how much more is Nancy's cash flow worth? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present valueBrenda Young desires to have $20,000 eight years from now for her daughter’s college fund. If she will earn 4 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation. Use Exhibit 1-C. (Round time value factor to 3 decimal places and final answer to nearest whole number.)