Will Smith will receive $80,000 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

Q: 8. Will Smith will receive $80,000 5 years from now, from a trust fund established by his father.…

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: which is the better option and by how​ much?

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A: Given, A=$9900 r=11% n=40 years

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Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…

A:

Q: Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

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A: From the question, Interest rate (i) = 6% Number of years (n) = 6 years FV = Future Value of gift PV…

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A: first thing is calculate semiannual interest rates and semiannual period and from table you can get…

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Q: Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of the next…

A: solution Bill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of…

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A: Answer and calculations are given below

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A: We use PMT function to calculate annual deposit (in financial calculator or excel)

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A: Sinking fund is referred as the account which consists amount of money kept aside to pay off a debt.…

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