In Making a Choice as to Which Assets to Use

question 88

Essay

In making a choice as to which assets to use in carrying out a program of lifetime giving, comment on the use of each of the following assets.
a. Assets that have declined in value.
b. Land that has appreciated in value.
c. Life insurance policies.

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Definitions:

Interest Rate Change

Modification in the percentage that determines the amount of interest to be paid on a loan or received on deposits over time.

Compounded Quarterly

A method of calculating interest where the accumulated interest is added to the principal sum every three months, leading to interest earnings on interest.

Interest

A fee for the benefit of loaning money, usually stated as a yearly interest rate.

Payments

These are amounts paid or to be paid by one party to another in exchange for goods or services or as repayment of a loan.