Question: Will Smith will receive $80,000 on December 31, 2019 (5 years from now), from a trust fund established by his father. Assuming the appropriate interest

Will Smith will receive $80,000 on December 31, 2019 (5 years from now), from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

Step by Step Solution

★★★★★

3.41 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

44671 80000 ... 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

Document Format (1 attachment)

1407-B-M-A-I(4821).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Charlie Brown will receive $50,000 on December 31, 2009 (5 years from now) from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded...

Will Smith will receive $80,000 on December 31, 2017 (5 years from now), from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded...

On June 1, 2017, Zealand Corp. (Zealand) signed a six-year lease for heavy equipment. The lease requires Zealand to make annual lease payments of $200,000 on May 31 of each year beginning in 2018....

Will Smith will receive $80,000 on December 31, 2020 (5 years from now), from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded...

Morgan Smith will receive $91,200 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the...

1. Alan Smith will receive $88,000 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is...

Cindy Henry deposited $18,700 in a money market certificate that provides interest of 6% compounded quarterly if the amount is maintained for 3 years. How much will Cindy Henry have at the end of 3...

Question 08 Newman Smith will receive $96,000 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded...

2 The Splish are planning for a retirement home. They estimate they will need $ 224,000 4 years from now to purchase this home. Assuming an interest rate of 10%, what amount must be deposited at the...

1. Alan Smith will receive $83,670 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is...

Once the switch is flipped closed in the below circuit, the voltage V across the ca- v 8- V RC pacitor is given by where R and C are constants of resistance and %3D dt capacitance and E(t) is the...

Questions 24 based on Figure 5, which reports regression results from a series of ordinary least squares regressions. The researchers aim to investigate the possibility that university students'...

35. LO.6, 7, 8 Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Both shareholders have a $400,000 stock basis as of January...

28 A staircase is to be constructed between M and N (see Figure 2.4). The distances from M to L, and from L to N, are 5 and 2 meters, respectively. If the height of a step is 25 centimeters and its...

Perez Company reported an increase in inventories in the past year. Discuss the effect of this change on the current ratio (current assets current liabilities). What does this tell a statement user...

What is meant by liquidity? Rank the following assets from one to five in order of liquidity. (a) Goodwill. (b) Inventories. (c) Buildings. (d) Short-term investments. (e) Accounts receivable.

The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a...

An office in Albuquerque has 24 workers including management. Eight of the workers commute to work from the west side of the Rio Grande River. Suppose six of the office workers are randomly selected....

Player Pressure Aggression Defence Endurance Overall score Rafael Nadal 96 81 80 86 Novak Djokovic Roger Federer 87 94 89 67 Daniil Medvedev 85 81 94 80 Dominic Thiem 85 79 79 93 Stefanos Tsitsipas...