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The Coopers were close to Aunt Belle, naming the children with names beginning with the...

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Accounting

The Coopers were close to Aunt Belle, naming the children with names beginning with the letter "B" as a tribute to her. When she died last October, she bequeathed the following to her great-nieces and great- nephew: Bradley-Municipal bonds that had an FMV of $50,000 at Aunt Belle's death and a basis to Aunt Belle of $20,000 Brea-Preferred stocks that had an FMV of $48,000 at Aunt Belle's death and a basis to Aunt Belle of $10,000 Blaire-A nonqualified, single premium tax-deferred annuity, which Aunt Belle purchased for $10,000 20 years ago and which had an FMV at her death of $40,000 Amy has asked you what lump-sum would need to be invested today to fund the children's future college costs. She asked you to assume each child will begin college at age 18 and graduate in four years. Assume current costs are $23,000 per year and are expected to increase by 4% per year. Any inherited funds will not be considered for college funding at this time. The Coopers would like you to use the 7% investment return a

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