Question
Mary passed awaythis year, leaving an estate of $4,000,000.At the time of her death her two children, Sara and Tom, were 18 and20 (exactly), respectively.
Mary passed awaythis year, leaving an estate of $4,000,000.At the time of her death her two children, Sara and Tom, were 18 and20 (exactly), respectively.
The terms of Mary's will are such that Sara and Tom shallinherit her estate, each inheriting their portion when they turn twenty-one. According to Mary's will, the amount thatSara can receive when Sara turns 21, is twice as much asthe amount thatTom can receive when Tom turns 21.
From the time of her death, Mary's estate is invested, and earns 4.27% p.a. interest, payable half-yearly (i.e.,j2= 4.27% p.a.).
A)How much does Sara receive when she turns 21?
A)2937650.1
B)2800848.2
C)2940598.8
D)2666666.7
B) How much does Tom receive when he turns 21?
A)1400424.1
B) 1468825.0
C) 1470299.4
D) 1333333.3
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