Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
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Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?
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- Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friends trust fund payments. For further instructions on present value in Excel, see Appendix C.Your grandparents would like to establish a trust fund that will pay you and your heirs $135,000 per year forever with the first payment 12 years from today If the trust fund earns an annual return of 26 percent, how much must your grandparents deposit today?Your grandparents would ilke to establish a trust fund that will pay you and your heirs $125,000 per year forever with the first payment 10 years from today. If the trust fund earns an annual return of 2.4 percent, how much must your grandparents deposit today?
- Your grandparents would like to establish a trust fund that would pay annual payments to you and your heirs of $100,000 a year forever. How much do your parents need to deposit into this trust fund today to achieve their goal if the fund can earn 6% interest?Your parents would like to establish a trust fund that would pay annual payments to you and your heirs of $500,000 a year forever. How much do your parents need to deposit into this trust fund today to achieve their goal if the fund can earn 7% interest?Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87
- Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.92A rich relative has bequeathed you a growing perpetuity. The first payment will occur in one year and will be $2,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 15% per year, a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest dollar.) b. What is the value of the bequest immediately after the first payment is made? The value of the bequest immediately after the first payment is made is $ (Round to the nearest dollar.)A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 11% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest dollar.)
- A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $3,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 6% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 12% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $1000. Each year after that, on the anniversary of the last payment you will receive a payment that is 8% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 12% per year: What is today’s value of the bequest? What is the value of the bequest immediately after the first payment is made?
