Money must be removed from the estate to purchase annuity

Assignment Help Financial Management

Reference no: EM131613844

The terms of a single parent's will indicate that a child will receive an ordinary annuity of $13,000 per year from age 18 to age 24 (so the child can attend college) and that the balance of the estate goes to a niece. If the parent dies on the child's 13th birthday, how much money must be removed from the estate to purchase the annuity? (Assume an interest rate of 9%, compounded annually. Round your answer to the nearest cent.)

Reference no: EM131613844

Questions Cloud

Withdrawals will they be able to make before account balance : How many college withdrawals will they be able to make before the account balance is $0?

What is the difference between a dnp and a phd in nursing : Which of these would you choose to pursue if you decide to continue your education to the doctoral level?

Critical infrastructure risks and vulnerabilities : Critical Infrastructure Risks and Vulnerabilities, Describe the tools and techniques used to protect against a global attack on SCADA

The patient care delivery model in inpatient facilities : Discuss how the CMS reimbursement rules for never events required a shift in the patient care delivery model in inpatient facilities.

Money must be removed from the estate to purchase annuity : how much money must be removed from the estate to purchase the annuity?

Choose one legislator on the state or federal level : Choose one legislator on the state or federal level who is also a nurse, & discuss the importance of their role as advocate for improving health care delivery.

Find a vector of given length pointing in the same direction : Find a vector with length 2 that points in the same direction as i? - j? + 2k? .

Discuss the constitution bill of right were malice : BI have been hiding information for the reason their action of getting information is illegal and the use of the Constitution Bill of Right were malice

Compute the present value of smyth industries profits : Ignoring antitrust concerns, compute the present value of Smyth Industries' profits, if it could have remained a monopoly when the interest rate was 0.08.

User Account

All Pages