Question: Marion's grandfather's will established a trust that will pay her $2900 every three months for 11 years. The first payment will be made six

Marion's grandfather's will established a trust that will pay her $2900 every

Marion's grandfather's will established a trust that will pay her $2900 every three months for 11 years. The first payment will be made six years from now, when she turns 19. If money is worth 7.9% compounded quarterly, what is today's economic value of the bequest? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value %24

Step by Step Solution

★★★★★

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To find the present value of the bequest we need to calculate the present value of an ordinary annui... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The first of ten semiannual payments of $2200 will be made 5, years from today. What is the present value of this deferred annuity using a discount rate of 7.2% compounded semiannually? (Do not round...

A deferred annuity consists of an ordinary annuity paying $2500 semiannually for a 12-year term after a 6- year period of deferral. Calculate the deferred annuity's present value using a discount...

What price will a finance company pay to a merchant for a conditional sale contract that requires 18 monthly payments of $331 beginning in five months? The finance company requires a rate of return...

Marions grandfathers will established a trust that will pay her $2000 every three months for 11 years. The first payment will be made six years from now, when she turns 19. If money is worth 7%...

Marion's grandfather's will established a trust that will pay her $ 1 , 7 0 0 every three months for 1 2 years. The first payment will be made five years from now, when she turns 2 0 . If money is...

Marion's grandfather's will established a trust that will pay her $2.100 every three months for 12 years. The first payment will be made five years from now, when she turns 20. If money is worth 71%...

7. How much interest is included in the future value of an ordinary simple annuity of $1,350 paid every six months at 6% compounded semi-annually if the term of the annuity is 2 years? The interest...

Answers needed for #3-4, 9, 11, 13-17, 19-22, 29-32, 35-37, 40 FI 3300 - CORPORATION FINANCE Take-Home Problem Set Three (THPS-3) Fall 2015 Directions: This problem set covers chapters 6 and 7 in the...

can you please answer #45 and #56? it is from the same document from before. Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement...

1. To finance a vacation in four years, Bernadette saves $530 at the beginning of every three months in an account paying interest at 3.92% compounded quarterly. a. What will be the balance in her...

According to the market segmentation theory of the term structure, the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity. bonds of one maturity...

5. Can you think of an example of another contentious issue that has been framed in an "either- or" way? What would be an ethically ideal way to resolve this issue and why?

What is a verb?

Mara Isabel Miln escribe una propuesta (proposal) para abrir un albergue (safe house) para mujeres maltratadas. Completa su propuesta con la forma correcta de las siguientes palabras. disfrutar...

Describe load and route planning. Explain 2 methods of selecting the best solution load and route optimization. Compare and/or contrast the roles of Freight Forwarders and Freight Brokers. Explain...

3.1. In relation to the relevant theory, evaluate the following statement: We need to examine the character of the agent (person) who carries out the action. An agent-based focus examines a person's...

ntries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month...

A copper sphere of 10-mm diameter, initially at a prescribed elevated temperature T;, is quenched in a saturated (1 atm) water bath. Using the lumped capacitance method, estimate the time for the...

Tien (age 70) transfers a remainder interest in a vacation cabin (with a total value of $100,000) to a charitable organization and retains a life estate in the cabin for herself. a. What is the...

Explain the circumstances in which cash and other property can be used in a Type B reorganization.

Maria Martinez died in 2015, survived by her spouse, Sergio, and two adult children. Her gross estate, all of which passed under her will, was valued at $7.2 million. She had Sec. 2053 deductions of...

The Fidelity Latin America Sr B fund (managed by Fidelity Investments Canada) was one of the top-performing mutual funds for the five years ending December 31, 2008. As of December 31, 2008, what...

The population of a mining town declined from 17,500 to 14,500 in a five-year period. If the population continues to decrease at the same compound annual rate, how long, to the nearest month, will it...

A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the portfolios five-year compound annual return?