State which formula you would use and why you would use this formula to calculate the value of the one time sum of $100,000 gift. State which formula you would use and why you would use this formula to calculate the value of the periodic payment of $750 per month gift. Then use the formulas to find the values of one time sum of $100,000 gift and the value of the periodic payment of $750 per month gift after 10 years, 20 years, and 30 years.

State your goals and how and when you would spend the money.

Question

State which formula you would use and why you would use this formula to calculate the value of the one time sum of $100,000 gift. State which formula you would use and why you would use this formula to calculate the value of the periodic payment of $750 per month gift. Then use the formulas to find the values of one time sum of $100,000 gift and the value of the periodic payment of $750 per month gift after 10 years, 20 years, and 30 years. 

State your goals and how and when you would spend the money.

anonymous · Answer

State your goals and how and when you would spend the money. For example, you may want to use your gift to begin a business in 15 years. If this is the case, then you should find the value of each gift for 15 years. Use this information to determine which gift you would choose, either the $100,000 one time sum or the $750 per month for your entire life. Give specific reasons why you have chosen the gift that you did.

anonymous · Answer

Discuss the advantages and disadvantages of the $100,000 one time sum gift. Discuss the advantages and disadvantages of the $750 per month lifetime gift. Which gift is more conservative? Why? Which gift is more riskier? Why? You may want to consider the implications of if you were to die in the near future. What would be the value of the two different gifts if you died one year after you received the gift? Do these values effect what gift you will choose? 

To keep the project simplified, you cannot withdraw the money and invest it differently. For example, if you choose the $100,000 one time gift, you cannot withdraw the $100,000 after a few months and invest in a speculative stock to try to make a $1,000,000 in a few years. 

Also, to keep the project simplified, do not be concerned about income taxes on your capital gains. Both accounts are assumed to be for your retirement; therefore, the rate of your taxes should be the same for both of the investments. 

Further, even though the gifts are not retirement accounts, many of you will use the gifts for your retirement. Therefore, it is not necessary to rollover the money into a retirement account. Thus, you must keep the money in the same account for the gift that you choose. Therefore, you cannot try to make more than 5% compounded monthly. Each of the gifts will earn 5% compounded monthly for the entire life of the investment.

anonymous · Answer

please help:((