Question
In: Finance
Your grandfather left an inheritance for you of $100,000. However, you can only drawdown on the...
Your grandfather left an inheritance for you of $100,000. However, you can only drawdown on the investment as follows:
Years 1 – 3 -- $15,000 each year
Year 4 to 6 -- $10,000 each year
Year 7 -- $25,000
Interest on the fund is 5%.
a) What is the present worth of this inheritance?
b) Due to high liquidity interest rates have dropped to 4%. What will be the impact on the present worth of this inheritance as a consequence of the market change?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
6. Your grandfather left an inheritance for you of $100,000. However you can only drawdown on...
6. Your grandfather left an inheritance for you of $100,000.
However you can only drawdown on the investment as follows: Years 1
– 3 $15,000 each year Year 4 to 6 $10,000 each year Year 7 $25,000
Interest on the fund is 5%. a) What is the present worth of this
inheritance? b) Due to high liquidity interest rate have dropped to
4%. What will be the impact on the present worth of this
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Your client Jon recently received a substantial inheritance from his deceased grandfather, who expressed in his...
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his deceased grandfather, who expressed in his will his desire that
Jon invest at least 75% of the money in real estate (which is how
Grandfather made his fortune). Jon is in the market for his first
home. He plans to make a down payment of 20% of the home’s purchase
price and finance the rest with a mortgage. Jon also wants to
purchase some investment property in the form of...
Your client Jon recently received a substantial inheritance from his deceased grandfather, who expressed in his...
Your client Jon recently received a substantial inheritance from
his deceased grandfather, who expressed in his will his desire that
Jon invest at least 75% of the money in real estate (which is how
Grandfather made his fortune). Jon is in the market for his first
home. He plans to make a down payment of 20% of the home’s purchase
price and finance the rest with a mortgage. Jon also wants to
purchase some investment property in the form of...
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1) Eight years from now, you will be inheriting $100,000. What is this inheritance worth to...
1) Eight years from now, you will be inheriting
$100,000. What is this inheritance worth to you today if you can
earn 7.25 percent interest, compounded monthly?
A) $50,947.00
B) $51,226.00
C) $52,150.00
D) $59,177.00
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