Homework Answers
Amount deposited in the trust = P = $450000
Monthly Interest Rate = r = 0.04/12
Monthly Interest Payment = P*r = 450000*0.04/12 = $1,500
Add Answer to:
9. Your rich uncle establishes a trust in your name and deposits $450,000 in it. The trust pays a guaranteed 4.0% r...
You will get $450,000 from your rich uncle Jim in 15 years. The discount rate and...
You will get $450,000 from your rich uncle Jim in 15 years. The discount rate and the interest rate are 2%/year, compounded annually. What is the present value of this gift from your uncle. 1. $330,356.63 2. $331,356.63 3. $332,256.63 4. $333,256.63 5. $334,356.63 The retirement benefit program from your employer will send you 240 monthly checks of $5,000 after you retire. The first check will be a month from your retirement. The interest and discount rates are 0.2%/month, compounded...
(4) You will get $450,000 from your rich uncle Jim in 15 years. The discount rate...
(4) You will get $450,000 from your rich uncle Jim in 15 years. The discount rate and the interest rate are 200/year, compounded annually. What is the present value of this gift from your uncle 1. $330,356.63 2. $331,356.63 3. $332,256.63 4. $333,256.63 5. $334,356.63
Your rich uncle gave you $10,000 today on your 20th birthday. You want to invest the...
Your rich uncle gave you $10,000 today on your 20th birthday. You want to invest the money and then start making monthly deposits, beginning one month from today, so that you will accumulate $500,000 by the time you are 60 years old. You believe that you can earn 8% on your investment. How much will you have to deposit each month to reach your goal of $500,000 by your 60th birthday? $126 - $150 More than $150 $76 - $100...
16. You have just received $185,000 from the estate of a long-lost rich uncle. If you...
16. You have just received $185,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.8% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.) 20.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your...
You are planning to make monthly deposits of $100 into a retirement account that pays 9...
You are planning to make monthly deposits of $100 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 21 years?
You are planning to make monthly deposits of $90 into a retirement account that pays 9...
You are planning to make monthly deposits of $90 into a retirement account that pays 9 percent annual interest (APR), compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 27 years?
(1 point) Your rich uncle the bequest require that this income stream be paid continuously into a...
(1 point) Your rich uncle the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 15 years. This account earns 4.8% interest, compounded continuously. to you a continuous, constant income stream of $2000 per year for the next 15 years. The terms of What is the present value of the bequest? 21385.322 How much money would the bequest be worth (including all interest accrued) after 15 years?...
You are planning to make monthly deposits of $80 Into a retirement account that pays 9...
You are planning to make monthly deposits of $80 Into a retirement account that pays 9 percent annual interest (APR), compounded monthly. If your first deposit will be made one month from now, how large wll your retirement account be in 21 years? $713,324.98 $62,415.94 $54,493.95 O $59,443.75 O $56,471.56
You are the beneficiary of a trust that pays you $25,000 per year for the next...
You are the beneficiary of a trust that pays you $25,000 per year for the next 15 years and assumes a 7.5% required rate of return. Use this information to answer the following questions using Excel formulas in the space provided. pmt $25,000 Present Value for Ordinary Annuity per 15 Present Value for Annuity Due rate 7.50% Future Value for Ordinary Annuity fv $652,959 Future Value for Annuity Due If the interest rate is quoted and compounds monthly, what are...
If your uncle borrows $55,000 from the bank at 9 percent interest over the seven-year life of the loan
If your uncle borrows $55,000 from the bank at 9 percent interest over the seven-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) How much of his first payment will be applied to interest? To principal? (Do not...
(4) You will get $450,000 from your rich uncle Jim in 15 years. The discount rate and the interest rate are 200/year, compounded annually. What is the present value of this gift from your uncle 1. $330,356.63 2. $331,356.63 3. $332,256.63 4. $333,256.63 5. $334,356.63
(1 point) Your rich uncle the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 15 years. This account earns 4.8% interest, compounded continuously. to you a continuous, constant income stream of $2000 per year for the next 15 years. The terms of What is the present value of the bequest? 21385.322 How much money would the bequest be worth (including all interest accrued) after 15 years?...
You are planning to make monthly deposits of $80 Into a retirement account that pays 9 percent annual interest (APR), compounded monthly. If your first deposit will be made one month from now, how large wll your retirement account be in 21 years? $713,324.98 $62,415.94 $54,493.95 O $59,443.75 O $56,471.56
Most questions answered within 3 hours.
-
After performing an EDTA titration experiment on 256 mL of an
unknown water sample you find...
asked 6 minutes ago -
The price elasticity of demand for a product is -1.00. You know
that...
a. Sales Revenue...
asked 12 minutes ago -
Discuss "Radical Reactions in Alkanes" giving one example. Your
explanation should include relevant mechanisms and reference...
asked 35 minutes ago -
A 13-year bond with a face value of 1500 dollars is redeemable
at twice par, and...
asked 53 minutes ago -
Topdog is a toy company, whose profits/sales percentage is 13%
in 2015, 16% in 2016 and...
asked 51 minutes ago -
A sag curve and crest curve connect a –3.5% tangent section of
highway (to the west)...
asked 50 minutes ago -
What is the Nernst (equilibrium) potential of a monovalent
cation (+ valence) at 37oC given the...
asked 1 hour ago -
Ryan wants to accumulate at least $55,000 by depositing $1,800
at the end of every month...
asked 1 hour ago -
Compressed air can be pumped underground into huge caverns as a
form of energy storage. The...
asked 1 hour ago -
Scores on the first half of a 60-item
test are correlated with scores on the second...
asked 1 hour ago -
Find the quantile function F^(-1)(p) (if one exists) of F(x) =
{0 for x<= 0, (1/9)x^2...
asked 1 hour ago -
Why do practitioners continue to prefer unstructured and
intuition based approaches to employee selection?
asked 1 hour ago