How much do you need to put in a trust today

Assignment Help Accounting Basics
Reference no: EM133172999

Question - You are interested in buying a house for your parents. You want to keep the house in your family forever and therefore want to set aside money today for all the future maintenance issues. Since it's a new house, you don't think anything will really go wrong for the next 10 years. You then estimate 11 years from today you'll have to set aside $8,000. This amount will grow by 3% per year forever.

If your discount rate is 8%, how much do you need to put in a trust today to pay for all future maintenance?

Reference no: EM133172999

Questions Cloud

Determine the pharoah direct labor rate variance : Assembly line workers at Pharoah Manufacuring worked a total of 13700 direct labor hours to produce 37800 units. Determine Pharoah direct labor rate variance
Upgrading various infrastructure systems : An indicator of a country's economic development is the viability and reliability of the country's infrastructure. Infrastructure represents capital goods that
What is the net advantage to leasing : Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. What is the net advantage to leasing
What is a revenue statement budget : What is a revenue statement budget - How does a cash flow budget aid business planning - What level of involvement should colleagues have in the budget planning
How much do you need to put in a trust today : You are interested in buying a house for your parents. If your discount rate is 8%, how much do you need to put in trust today to pay for all future maintenance
Foundational concept-digital twin reflection questions : Considering a product your organization supports, what would be a good candidate for a digital twin?
Record all depreciation applicable for each period : The company uses the Straight Line Method. Record ALL depreciation applicable for each period of each company's depreciable assets
How fast has world population grown : Historically, how fast has world population grown? The population has not grown evenly across time-what are some of the historical factors that have caused the
Identify in the management of organization : What controls can you identify in the management of an organization where you have worked?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find the perpetual ending inventory balance on December

Beginning inventory 50 units at $150 each and September 30 purchase 60 units at $170 each. Compute the perpetual ending inventory balance on December

  Calculate the adjusted cash balance per books on April

Notes receivable and interest collected by bank 5210 and Cash balance per books, 4/30 $15500. Calculate the adjusted cash balance per books on April 30

  Prepare the perpetual inventory schedule

On June 1, Swifty sold 20 units, and on August 27, 40 more units. Prepare the perpetual inventory schedule for the above transactions using FIFO

  Specific prices over general price level

Inflation was 8 percent during the most recent year and your organization's investment in land rose 12 percent. If the beginning appraised land value was $1,000,000, what increase in specific prices over general price level would be reported, stat..

  An increase in the accounts receivable

Which of the following performance measures will decrease if there is an increase in the accounts receivable?

  What are some methods used by investment banks

What are some methods used by investment banks to help equity issuers mitigate price risk during the marketing process?

  Recommend hershey use to account

Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining.

  Calculate the first years depreciation expense

Your sport organization purchased a new computer for $1000 and expects to sell it in 5 years for $100. Calculate the first years depreciation expense

  Discuss how should the deferred tax amounts be classified

How should the deferred tax amounts be classified in a classified balance sheet

  Hiker company completes the following transactions

Hiker Company completes the following transactions during the current year.

  Prepare the income statement and balance sheet

The business was started when the company received $49,500 from the issue of common stock. Prepare the income statement and balance sheet

  What is the mer

All other expenses charged directly to the fund = $3452140. Assuming the average Net Asset Value for ECA Growth was $564164819 in 2020, what is the MER

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd