You are a trust fund baby, but you cannot touch your money until you are 30....
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.
Homework Answers
| Future Value = Present Value*((1+r)^t) | |||||||
| where r is the interest rate that is 3% and t is the time period that is 9 years. | |||||||
| The future value is $25000. | |||||||
| 25000 = Present value*((1.03)^9) | |||||||
| Present value = 25000/(1.304773) | |||||||
| Present value = 19160.42. | |||||||
| The money is worth $19160.42 to you today. | |||||||
Add Answer to:
You are a trust fund baby, but you cannot touch your money until
you are 30....
your client has been given a trust fund valued at 1.60 million. She cannot access the...
your client has been given a trust fund valued at 1.60
million. She cannot access the money until she turns 65 years old,
which is in 15 years. At that time ahe can withdraw 25,000 per
month.
Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given a trust fund valued at $1.60 million. She cannot access the money until she turns 65 years old, which years. At that time, she can withdraw $25,000...
Please show all steps and explain 27) Congratulations, you just had a baby girl today! You...
Please show all steps and explain
27) Congratulations, you just had a baby girl today! You now establish a college fund for her that you hope will grow to $500,000 in value on her 18th birthday. How much will you need to invest in the fun each year if your investments grow at an annual interest rate 8%? 28) You set up a college fund in which you pay $5,000 each year at the beginning of the year. How much...
Your grandfather placed $5,000 in a trust fund for you today. 10 years later the fund...
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)
A young man is the beneficiary of a trust fund established for him 21 yr ago...
A young man is the beneficiary of a trust fund established for him 21 yr ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 10%/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.) compounded annually $ compounded quarterly $ compounded monthly $ Need Help? Read Talk to a Tutor MY NOTES PRACTICE ANOTHER 4. [-/0.1 Points]...
Your client has been given a trust fund valued at $1.57 million. She cannot access the...
Your client has been given a trust fund valued at $1.57 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $23,500 per month. If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money?
In 1970 your grandmother put $1,000 into a special trust fund to be paid to a...
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?
You have become a financial advisor and a new client has received a trust fund currently...
You have become a financial advisor and a new client has received a trust fund currently worth $500,000. However, she will not have access to the fund until she turns 60 years old, which is in 20 years. At that time she can withdraw $10,000 per month. If the trust fund is invested at a 6 percent rate, compounded monthly, how many months will it last your client once he starts to withdraw the money?
Your client has been given a trust fund valued at $1.08 million. He cannot access the...
Your client has been given a trust fund valued at $1.08 million. He cannot access the money until he turns 65 years old, which is in 25 years. At that time, he can withdrawal $29,000 per month. If the trust fund is invested at a 5.5 percent rate, how many months will it last your client once he starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Your client has been given a trust fund valued at $1.53 million. She cannot access the...
Your client has been given a trust fund valued at $1.53 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $21,500 per month. If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Number of months
Your client has been given a trust fund valued at $1.62 million. She cannot access the...
Your client has been given a trust fund valued at $1.62 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $19,000 per month. If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Number of months
your client has been given a trust fund valued at 1.60
million. She cannot access the money until she turns 65 years old,
which is in 15 years. At that time ahe can withdraw 25,000 per
month.
Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given a trust fund valued at $1.60 million. She cannot access the money until she turns 65 years old, which years. At that time, she can withdraw $25,000...
Please show all steps and explain
27) Congratulations, you just had a baby girl today! You now establish a college fund for her that you hope will grow to $500,000 in value on her 18th birthday. How much will you need to invest in the fun each year if your investments grow at an annual interest rate 8%? 28) You set up a college fund in which you pay $5,000 each year at the beginning of the year. How much...
A young man is the beneficiary of a trust fund established for him 21 yr ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 10%/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.) compounded annually $ compounded quarterly $ compounded monthly $ Need Help? Read Talk to a Tutor MY NOTES PRACTICE ANOTHER 4. [-/0.1 Points]...
Your client has been given a trust fund valued at $1.53 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $21,500 per month. If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Number of months
Your client has been given a trust fund valued at $1.62 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $19,000 per month. If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Number of months
Most questions answered within 3 hours.
-
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 1 minute from now -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 1 minute ago -
One mole of oxygen gas is at a pressure of 5.90 atm and a
temperature of...
asked 4 minutes ago -
The primary side of a transformer has 935 turns and is connected
to 118 Volts A/C....
asked 3 minutes ago -
This must be done in Java and it must contain a public static
void (string []args)...
asked 6 minutes ago -
An economy has a Cobb–Douglas production function:
Y=Kα(LE)1−αY=Kα(LE)1−α
The economy has a capital share of 0.30,...
asked 21 minutes ago -
60.0 mL of a silver chlorate solution with a concentration of
0.654 M is mixed with...
asked 26 minutes ago -
Asked if he has any regrets about the way he's handled the
coronavirus crisis so far,...
asked 37 minutes ago -
True or False?
Considering a door as a rigid body. Its angular motion happens
in a...
asked 41 minutes ago -
In
IUPAC naming, do we concider the prefix in alphabatizing?
In other words do we look...
asked 46 minutes ago -
If a trust has income required to be distributed of $11,500,
other amounts paid or required...
asked 1 hour ago -
The degree of ionization of a weak acid
____________________.
Select all that are True.
a) varies...
asked 1 hour ago