For each of the following independent situations, give the answer requested. Possible answers are at bottom page.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for a period of 10 years, after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the income interest received by Kelley?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 65), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 4%. What is the value of the remainder interest received by Lester?

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this trust for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive income from this for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the income interest received by Kelley? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 45), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Jacob placed into trust assets worth $1,000,000. Kelley is to receive from this trust an annual annuity of $100,000 for as long as she lives (Kelley's age is 75), after which time the trust is to be terminated and the remaining assets distributed to Lester. Assume the applicable federal rate (AFR) is 3.2%. What is the value of the remainder interest received by Lester? Note, Table S found in the Appendix of the textbook does not include this AFR, so you will need to use the full table found in the Resources link in BlackBoard.
A.$811,090
B.$471,510
C.$188,910
D.$633,370
E.None of the other answers is correct
F.$124,080
G.$324,436
H.$528,490
I.According to Table S (3.2% AFR), $1,000,000 is not sufficient to fund an annuity of $100,000. Accordingly, the value of the remainder interest is zero.
J.$675,564
K.$280,290
Recently Asked Questions
 A jack system will increase the potential energy of a heavy load by 1000 J with a work input of 2000 J . The efficiency of the jack system is
 A 2500N piledriver ram falls 10 m and drives a post 0.1 m into the ground . The average impact force on the ram is
 A 2kg mass is held 4 m above the ground . What is the approximate potential energy of the mass with respect to the ground ?