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3 years ago

Difference between a will and a living trust

Business

1 answer:

aev [14]3 years ago

7 0

Answer:

A will gets into effect after a person dies. trust gets into effect as soon as it is created. The will covers all the property under the individual's name. Trust covers property which has been transferred in the name of the trust.

Explanation:

A will directs who will receive his property after an individual's death. It also appoints a representative to carry out the wishes of the deceased. A trust on the other hand can divide the property before, after or at death.

A will is a document through which a person expresses his wishes about how his property is to be distributed, it can also contain details regarding funeral.

A trust is an arrangement through which property of an individual is held by other individuals or institution.

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Consider an economy with a corn producer, some consumers, and a government. In a given year, the corn producer grows 30 million

lys-0071 [83]

Answer:

a. GDP using product approach

There are no intermediate goods inputs. Corn producer grows 30 million bushels of corn and each bushel of corn worth is $5.

GDP = 30 million * $5

GDP = $150 million

GDP using expenditure approach

i) Consumers buy 20 million bushels of corn

Consumption = 20 million * 5

Consumption (C) = $100 million

ii) Corn producer adds 5 million bushels to inventory

Investment = 5 million * $5

Investment (I) = $25 million

iii) Government buys 5 million bushels of corn

Government spending = 5 million * $5

Government spending (G) = $25 million

GDP = C + I + G

GDP = $100 + $25 + $25

GDP = $150 million

GDP using income approach

Profit income = $150 million - $60 million - $20 million

Profit income = $70 million

Government income = Taxes paid by the corn producer = $20 million

GDP = $60 million + $70 million + $20 million

GDP = $150 million

b. Private disposable income = GDP + Net factor payments + Government transfers + Interest on the government debt - Total taxes

Private disposable income = $150 million + 0 + $5 million + $10 million - $30 million

Private disposable income = $135 million

Private savings = Private disposable income - Consumption

Private savings = $135 million - $100 million

Private savings = $35 million

Government savings = Government tax income - Transfer payments - Interest on the government debt - Government spending

Government savings = $30 million - $5 million - $10 million - $5 million

Government savings = $10 million

National savings = Private savings + Government savings

National savings = $35 million + $10 million

National savings = $45 million

Government budget surplus = Government savings = $10 million

Government deficit = (-) $10 million

8 0

3 years ago

g A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third y

Lorico [155]

Answer:

$880.31

Explanation:

Here for computing the new price of the bond we use the present value formula i.e. to be shown in the attachment

Given that,

Assuming Future value = $1,000

Rate of interest = 8.6% ÷ 2 = 4.3%

NPER = 8 years × 2 = 16

PMT = $1,000 × 6.5% ÷ 2 = $32.50

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the new price of the bond is $880.31

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riadik2000 [5.3K]

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Gwar [14]

Answer:

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Explanation:

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