What is the value of inheritance

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You estimate that you will owe $40,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month? 

Atlas Insurance wants to sell you an annuity which will pay you $1,600 per quarter for 25 years. You want to earn a minimum rate of return of 5.3 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? 

Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,400 on the first day of each year, starting immediately and continuing for 18 years. What is the value of this inheritance today if the applicable discount rate is 6.6 percent?

You are considering an annuity which costs $160,000 today. The annuity pays $17,500 a year at an annual interest rate of 7.50 percent. What is the length of the annuity time period? (enter your answer as xx years, do not add 'years' to your answer, only the number)

You would like to establish a trust fund that will provide $120,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 4.6 percent. How much money must you deposit today to fund this gift for your heirs?

Reference no: EM131225446

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