You want to start a scholarship fund at your alma mater with giving one $10,000 scholarship annually beginning one year from now. And you have at most $150,000 to start the fund. You also want the scholarship to be given out indefinitely. Assuming an annual interest rate of 8% (compounded continuously , do you have enough money for the scholarship fund?
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.You want to start a scholarship fund at your alma mater with giving one
$10,000 scholarship annually beginning one year from now. And you have at most
$150,000 to start the fund. You also want the scholarship to be given out indefinitely. Assuming
an annual interest rate of 8% (compounded continuously , do you have enough money for the
scholarship fund?
15%4
(Hint: 1. Derive the formula of the
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- ? You would like to have enough money saved to receive a $53,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8 percent. O -00 Multiple Choice $715,500 $1,060,000 $530,000You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.You would like to have enough money saved to receive a growing annuity for 25 years, growing at a rate of 4% per year, the first payment being $60,000 after retirement, so that you and yourfamily can lead a good life. How much would you need to save in your retirement fund toachieve this goal? (assume that the growing perpetuity payments start one year from the date ofyour retirement. The interest rate is 12%)?
- K (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent compounded annually, how much must you deposit each year to reach your goal? To reach your goal, your annual deposit must be $ (Round to the nearest cent.)Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:(Solving for i of an annuity) You lend a friend $30,000, which your friend will repay in five equal annual end-of-the year payments of $10,000, with first payment to be received 1 year from now. What rate of return does your loan receive?
- You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year forever, starting one year from now. If the school's endowment discount rate is 4 %4%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?Mick Mitchell wishes to have $120,000 in seven years. If he can earn annual interest of 12%, how much must he invest today? Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of S1 table.) (Click the icon to view Present Value of S1 table.) (Click the icon to view Future Value of S1 table.) OA. $265,320 В. $1,210 OC $54,240 OD. S111,9602. A fund is to be created which pays out a scholarship of £9,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 3%, how much should be paid into the fund? £ 数字 Enter an answer correct to 2 decimal places.
- You want to endow a scholarship now that will pay $7,000 per year forever, starting the first award 10 years from now. If the school's endowment discount rate is 6%, what amount must you donate today to endow the scholarship? The amount you must donate today to endow the scholarship is $ (Round to the nearest cent.)Show Solution. Topic: Perpetuities 5. If money is worth 13% effective, what is the present value of perpetuity of P11,300 if payments are made at the end of each year?Please help answer number 4 only. Find the future values of these ordinary annuities. Compounding occurs once a year. $400 per year for 10 tears at 10% $200 per year for 5 years at 5% $400 per year for 5 years 0% Rework Parts a, b, and c assuming they are annuities due. The formula to compute future value of annuity: 1) Hence, the future value of ordinary annuity is $6605. 2) Hence, the future value of ordinary annuity is $1110. 3) Hence, the future value of annuity is $3500.