your grandparents would like to establish a trust fund that will pay you and your heirs...
Homework Answers
This amount is a perpetuity.
The amount to be deposited can be known using the formula:
Annual cash flows/ appropriate discount rate
=>145,000/ 2.8%
=>5,178,571.43.
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your grandparents would like to establish a trust fund that will pay you and your heirs...
Your grandparents would like to establish a trust fund that will pay you and your heirs...
Your grandparents would like to establish a trust fund that will pay you and your heirs $170,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.3 percent, how much must your grandparents deposit today? Multiple Choice O $5,887,445.89 54292,929.29 C) $4755,244.76 54,507,575.76
Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with t...
Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.1 percent, how much must your grandparents deposit today?
ou would like to establish a trust fund that will provide $50,000 a year forever for...
ou would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 2.75 percent. How much money must you deposit today to fund this gift for your heirs?
You would like to setup a trust fund for your two children to ensure that they...
You would like to setup a trust fund for your two children to ensure that they will be taken care of in the future. At the end of this year, you would like each of your children to receive $20,000 (2 x $20,000= $40,000 payment received at the end of the year), and you would like to have this amount grow at the rate of inflation, (which will be assumed to be 3.5% forever) How much do you need to...
You just paid $347,000 for a perpetuity that will pay you and your heirs $11,100 a...
You just paid $347,000 for a perpetuity that will pay you and your heirs $11,100 a year forever, with the first payment occuring a year from today. What is the rate of return (interest rate) on this policy? Multiple Choice o 3.35 percent o 3.54 percent o 3.20 percent o 2.95 percent 2.95 percent o 3.26 percent
Imari wants to establish a charitable foundation that will make annual scholarship payments forever. Imari wants...
Imari wants to establish a charitable foundation that will make annual scholarship payments forever. Imari wants the foundation to make the first annual scholarship payment in 4 years from today, she wants that first scholarship payment to be 22,410 dollars, and she wants annual scholarship payments to increase by 3.79 percent per year forever. To fund the foundation, Imari plans to make equal annual savings contributions for 3 years. How much does Imari need to save each year for 3...
If you are willing to pay $46,850.00 today to receive $4,341.00 per year forever then your...
If you are willing to pay $46,850.00 today to receive $4,341.00 per year forever then your required rate of return must be ____%. Assume the first payment is received one year from today. If you are willing to pay $20,509.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $______. Assume a 7.00% discount rate. What discount rate would make you indifferent between receiving $3,727.00 per year forever and $5,271.00 per year...
If you are willing to pay $44,793.00 today to receive $4,189.00 per year forever then your...
If you are willing to pay $44,793.00 today to receive $4,189.00 per year forever then your required rate of return must be ____%. Assume the first payment is received one year from today. If you are willing to pay $29,453.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $______. Assume a 15.00% discount rate. What discount rate would make you indifferent between receiving $3,526.00 per year forever and $5,610.00 per year...
Your crazy uncle left you a trust that will pay you $38,000 per year for the...
Your crazy uncle left you a trust that will pay you $38,000 per year for the next 28 years with the first payment received one year from today. If the appropriate interest rate is 7.1 percent, what is the value of the payments today?
Your crazy uncle left you a trust that will pay you $39,000 per year for the...
Your crazy uncle left you a trust that will pay you $39,000 per year for the next 30 years with the first payment received one year from today. If the appropriate interest rate is 7.2 percent, what is the value of the payments today?
Your grandparents would like to establish a trust fund that will pay you and your heirs $170,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.3 percent, how much must your grandparents deposit today? Multiple Choice O $5,887,445.89 54292,929.29 C) $4755,244.76 54,507,575.76
You just paid $347,000 for a perpetuity that will pay you and your heirs $11,100 a year forever, with the first payment occuring a year from today. What is the rate of return (interest rate) on this policy? Multiple Choice o 3.35 percent o 3.54 percent o 3.20 percent o 2.95 percent 2.95 percent o 3.26 percent
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