HomeworkLib
Question

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?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1


0 0
Add a comment
Know the answer?
Add Answer to:
Your crazy uncle left you a trust that will pay you $39,000 per year for the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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 $24,000 per year for the...

    Your crazy uncle left you a trust that will pay you $24,000 per year for the next 17 years with the first payment received one year from today. If the appropriate interest rate is 5.7 percent, what is the value of the payments today? Multiple Choice $256,970.38 $230,559.54 $247,617.69 $265,536.06 $244,121.86

  • You crazy uncle left you a trust that will pay you$20000 per year for the next...

    You crazy uncle left you a trust that will pay you$20000 per year for the next 31 yeras with the first payment received one year from today. If the appropriate rate is 5.3 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 $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?

  • Your uncle, in his will, left you the sum of $40,000/year forever with payments starting three...

    Your uncle, in his will, left you the sum of $40,000/year forever with payments starting three years (Year 3) from today (Year 0). However, the news is even better. He has specified that the amount would grow at 2% per year after the first payment to offset inflation rate (i.e., the second payment would be $40,000 x (1 + 0.02)). With an APR of 3% compounded annually, what is the PV of the inheritance today? (Draw the time line and...

  • 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...

  • What is the value today of a money machine that will pay $3,168.00 per year for...

    What is the value today of a money machine that will pay $3,168.00 per year for 30.00 years? Assume the first payment is made one year from today and the interest rate is 10.00%. What is the value today of a money machine that will pay $2,756.00 per year for 30.00 years? Assume the first payment is made 7.00 years from today and the interest rate is 6.00%. What is the value today of a money machine that will pay...

  • 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 145000 per year forever with the first payment one year from today. if the trust fund earns an annual return of 2.8 percent how much must your grandparents deposit today

  • 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

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT