Qa.5. Julia Baker died, leaving to her husband Adams an insurance policy contract that provides that the beneficiary (Adams) can choose anyone of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if:Click here to view factor tables(a)(a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)(b)Your answer is correct.Present value $(c)eTextbook and MediaYour answer is correct.Show Transcribed Text(b) $4,200 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 andfinal answer to O decimal places, e.g. 458,581.)Present value $56770Present value $65474Attempts: 1 of 2 usedG(c) $19,800 immediate cash and $1,980 every 3 months for 10 years, payable at the beginning of each 3-month period. (Roundfactor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)

Present Value: The present worth of the future amount is termed present value and it can be…

Answered: Julia Baker died, leaving to her…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 41P

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Julia Baker died, leaving to her husband Tony an insurance policy contract that provides that the beneficiary (Tony) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: $4,060 every 3 months for 3 years and $1,480 each quarter for the following 25 quarters, all payments payable at the end of each quarter. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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