How much money must be removed from the estate to purchase


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.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: How much money must be removed from the estate to purchase
Reference No:- TGS02413634

Expected delivery within 24 Hours