Question

In: Finance

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $9. Based on actuarial tables, “Joltin’ Joe” could expect to live for 20 years after the actress died. Assume that the EAR is 9.5 percent. Also, assume that the price of the flowers will increase at 3.6 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died.

  

What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

no intermediate rounding is done, so if you are given answer choices, select nearest one. In some cases, answers are rounded and some cases not. Thank you

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $8. Based on actuarial tables, “Joltin’ Joe” could expect to live for 25 years after the actress died. Assume that the EAR is 8.9 percent. Also, assume that the price of the flowers will...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $10. Based on actuarial tables, “Joltin’ Joe” could expect to live for 25 years after the actress died. Assume that the EAR is 9.4 percent. Also, assume that the price of the flowers will...
When Marlyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every...
When Marlyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday for as long as he lived. The week after she died in 1962, a bunch of fresh flowers the the former baseball player thought appropriate for the star cost about $7. Based on the actuarial tables, "Jolton' Joe" could expect to live for 26 years after the actress died. Assume the the EAR is 10.4 percent. Also, assume that the price of the...
Ghoulardi died in 2019. Her gross estate was worth $20,000,000. $5,000,000 went directly to her husband....
Ghoulardi died in 2019. Her gross estate was worth $20,000,000. $5,000,000 went directly to her husband. $500,000 went to her church. Her funeral and all properly deductible liabilities of the estate totaled $100,000. Her post-1976 cumulative taxable gifts totaled $800,000; the related estate and gift tax deemed paid on cumulative gifts was $50,000. No estate taxes were paid at the state level. a. Calculate her final estate tax liability. b. How much income does her husband report in his personal...
Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the...
Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the beneficiary (Benno) can choose any one of the following options: a) 55,000 immediate cash b) 4,000 every 3 months payable at the end of each quarter for 5 years c) 18,000 immediate cash and 1,800 every 3 months for 10 years, payable at the beginning of each 3-month period d) 4,000 every 3 months for 3 years and 1,500 each quarter for the following...
Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the...
Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. (a) Your answer is correct. (a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) (b) $4,200 every 3 months payable...
Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the...
Sara Wald died, leaving to her husband Benno an insurance policy contract that provides that the beneficiary (Benno) can choose any one of the following options: a) 55,000 immediate cash b) 4,000 every 3 months payable at the end of each quarter for 5 years c) 18,000 immediate cash and 1,800 every 3 months for 10 years, payable at the beginning of each 3-month period d) 4,000 every 3 months for 3 years and 1,500 each quarter for the following...
Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the...
Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. Your answer is correct. (a) $55,260 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer...
Monique was previously married but is currently divorced. In 2017, prior to the divorce, her ex-husband...
Monique was previously married but is currently divorced. In 2017, prior to the divorce, her ex-husband received a distribution from his pension plan in the amount of $250,000. When it came time to file their taxes, Monique asked about the distribution and was told by her husband that he had consulted with a CPA and was told that because part of the funds were used to pay off a mortgage there was no taxable income to report. With this information,...
rilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary...
rilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann (age 30), were the contingent beneficiaries. All three survived Marilyn. How would the policy proceeds be distributed?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT