Your grandfather placed $2,000 in a trust fund for you. In 10 years the fund will...
Your grandfather placed $5,000 in a trust fund for you today. 10 years later the fund will be worth $8,000. What is the interest rate earned on this trust fund? (Annual compounding)
plz dont use excel . and solve step by step.. for my understanding. 17. Your grandfather placed $2,000 in trust fund for you. In 10 years the fund will be worth $5,000. What is the compound annual rate of return on the trust fund?
28. Your parents set up a trust fund for you 10 years ago that is now worth $31,474.42. If the fund earned 7% per year, how much did your parents invest in dollars? a. $10,000 b. $16,000 c. $20,000 d. $24,000 e. $30,000 f. $35,000
When Derek was a small child, his grandfather established a trust fund for him to receive $18,000 on his 35th birthday. Derek just turned 23. What is the value of his trust today if the trust fund earns 6% interest? If he had to wait until age 40 to receive the money, what is the present value today of the $18,000 to be received in 17 years? The present value of his trust today if the trust fund earns 6%...
You are a trust fund baby, but you cannot touch your money until you are 30. You are now 21 and want to plan for your future based on the current value of your trust fund. The guaranteed payout of your trust is $25,000. What is that money worth to you today, if you assume an annual inflation rate of 3% compounded annually? Show all of the steps.
You are the beneficiary of a trust fund that will start paying you cash flows in five years. The cash flows will be $25,000 per year and will continue for 40 years. If the interest rate is 4% per year, what is the value needed in the trust fund now to fund these cash flows?
When you were two-years-old, your grandmother left you a trust fund with $10,000 in it that has been earning 12% for 20 years. How much is in the trust fund now, based on annual compounding? (use financial calculator and please show work).
In 1970 your grandmother put $1,000 into a special trust fund to be paid to a future grandchild (you) 50 years later, in the year 2020. How much will this trust be worth then if it has been earning 9% per year compounded quarterly?
7. Steve receives $1500/month from a trust fund for 30 years when he turns 20 years old. What is the present value of total payment given discount rate of 7%. 8. You rent a booth in Christina Mall to sell cell phone covers. You order the covers from a ware house for $28 a dozen (12 pieces). The average selling price for the covers is $9.98. You have to pay $3200 for the monthly rent and $200 administration fee every...
Answer Question 26 (3 points) A grandfather tells his grandson that he has created a trust fund for him. The terms of the trust are as follows: $9,800 per year for 30 years. The money will be invested in an account that pays 4% annual interest. The payments will start 15 years from today. How much money does the grandfather need to endow the trust with today to fund all the payments? Format $12,345 as 12345 Your Answer: Answer Question...