When Alfred Nobel died, he left the majority of his estate to fund five prizes, each...
When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died (the sixth one, in economics, was added later) a. if he wanted the cash award of each of the five prizes to be $30,000 and his estate could earn 9% per year, how much would he need to fund his prizes? b f he wanted the value of each prize to grow...
When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died (the sixth one, in economics, was added later) a. If he wanted the cash award of each of the five prizes to be $30,000 and his estate could earn 9% per year, how much would he need to fund his prizes? b. If he wanted the value of each prize to grow...
When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died (the sixth one, in economics, was added later). a. If he wanted the cash award of each of the five prizes to be $30000 and his estate could earn 11% per year, how much would he need to fund his prizes? b. If he wanted the value of each prize to grow...
Cartman was just left half of his grandmother’s estate after she died. Since he isn’t really sure what to do with his newfound wealth, he decides to work with a financial planner. As a part of the financial plan, the advisor recommends adjusting his inherited portfolio of C.D.’s and T-bills into an investment policy that more closely resembles Cartman’s goals, risk tolerance, and time horizon. Although Cartman sees how this would normally make sense, he told the advisor he preferred...
Jacob died unexpectedly in an auto accident. He is survived by two adult daughters, Amber and Sue. He left a valid Will which stated that his estate shall be split equally between his two daughters. His assets when he died were:a. House owned in his sole name.b. Life insurance policy with his daughters named as equal beneficiaries.c. Lake house, worth $150,000, owned jointly, with rights of survivorship, with his daughter Amber.d. Bank account in his sole namee. Retirement benefits, worth...
2) Queens Corporation (QC) purchases a $5 million machine. The machine will be depreciated by $1 million per year over 5 years, starting this year. Suppose QC's tax rate is 25%. a) What impact will the cost of the purchase have on earnings during the first year? b) What impact will the cost of the purchase have in the firm's cash flow during the first year? 3) A philanthropist wants to fund a prize to be awarded annually in perpetuity...
Mr. Parker is creating a college fund for his daughter. He plans to make 13 yearly payments with the first payment of $4000 today on his daughter’s fifth birthday and to increase each payment by 5%. Also, He would expect to earn a 10% annual return on his investment and his daughter will need four withdrawals from this account to pay for her education beginning when she is 18 (i.e. 18, 19, 20, 21). If the cost of college education...
6) John’s parents started a college fund earning 8% (compounded annually) on the day he was born in1990. They deposited $1,500 on his birthday each year until he turned 5, after that they began depositing $4,000 annually until he turned 18. When he was 16 he wanted to buy a car. Knowing that John’s college fund would need a balance of at least $100,000 when he started college, at the age of 18, how much did John’s parents allow him...
Mr. Blochirt is creating a college investment fund for his daughter. He will put in $7,000 per year for the next 17 years and expects to earn a 12% annual rate of return. How much money will his daughter have when she starts college? 330162 331175 342915 342188
Quentin has opened a retirement fund in which he will deposit 15% of his salary each year. If his current salary is $70,000 per year and he expects that it will increase 5% each year, what will be the present worth of the fund after 30 years if it earns a 7% interest rate per year?(10 pts)