Using the Compound Interest Tables, Answer Each of the Following

question 48

Essay

Using the compound interest tables, answer each of the following questions.
Required:
a. What is the present value on January 1, 2014, of $50,000 due on January 1, 2020, and discounted at 7% compounded annually?
b. What is the present value on January 1, 2014, of $8,000 due on January 1, 2022, and discounted at 10% compounded semiannually?

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Definitions:

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.

Legal Title

The formal right of ownership of property, recognized and protected by law, which may not necessarily entail the possession or use of the property.

Resulting Trust

A trust law concept that arises when one person holds the title to property under circumstances suggesting that he or she should not enjoy the full beneficial interest in the property.

Living Trust

A legal document that allows an individual to control their assets during their lifetime and distribute the remaining assets after death without the need for probate.