Need answers ASAP... Richard Snooty wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?

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A: PRESENT VALUE OF PERPETUITY FORMULA: PRESENT VALUE =ANNUAL CASHFLOWRATE

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A:

Q: Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover…

A: Future Value = Present Value ( 1 + i )n   Note: Assuming that interest on his investment will be…

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A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

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Q: Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college…

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A:

Q: Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year…

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A: Computation:

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A: PV termed as Present value which is current or the present amount of money which is deposited in…

Q: Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and…

A: Using excel PMT function

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A: RATE  1.  4% 2.  5% YEARS 15 PRESENT VALUE $0 FUTURE VALUE $220,000