A local university received a $150,000.00 gift to establish an endowment fund for a student scholarship. The endowment fund earns interest at a rate of 4.00% compounded semi-annually. The university will award the scholarship at the end of every quarter, with the first scholarship being awarded seven years from now. Calculate the size of the scholarship that the university can award.
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- u.A fund donated by wealthy person to IECEP to provideannual scholarships to deserving ECE students. Thefund will grant Php 5 000 for each of the first five years,Php 8 000 for the next five years and Php 10 000 foreach year thereafter. The scholarship will start oneyear after the fund is established. If the fund earns 8%interest, what is the amount of the donation? 3. Ifpayments are made at end of the interest period. 4. Ifpayments are made at beginning of the interestperiod. include a cash flow diagra,Person X donated $ 50 000 to a foundation. This donation is distributed to the needy at the end of each year from the donation fund with an effective annual interest rate of 5%. It is distributed as 2 000 USD at the end of each year for the first 10 years and 3 000 USD in the following times. Payments continue until the fund is reset, but less than 3 000 USD remained in the fund in the last year. Accordingly, how many years have passed until the fund is reset and how much is the remaining money in the fund in the last year? ThanksQ) A donor wishes to endow a scholarship to a certain university in the name of a certain professor. The scholarship is to provide $80,000 per year for first 10 years and $100,000 per year for the following 90 years. If the university expects to be able to earn 10% per year compounded continuously on the endowment, how much must the donor give now if the first scholarship is to be given 3 years from now? Solve it early but correctly. Handwriting or typed answer only not in excel work.
- 3. A donor wishes to endow a scholarship to a certain university in the name of a certain professor. The scholarship is to provide $50000 per year for the first 8 years and starting 11 years from now $200000 every 3 years (forever). If the university expects to be able to earn a nominal interest of 16% per year compounded continuously on the endowment, how much must the donor give now if the first scholarship is to be given 1 year from now?A foundation supports an annual campus seminar by using the earnings of a $50,000 gift. It is felt that 10% interest will be realized for 10 years but that plans should be made to anticipate an interest rate of 6% after that time. What uniform annual payment may be established from the beginning, to fund the seminar at the same level into infinity?Question 1 What is the amount of the payments that Dwight Schrute must make at the end of each of 8 years to accumulate a fund of $86,200 by the end of the 8th year, if the fund earns 8% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Dwight's payment at the end of each year must be ?
- The University is given a gift of $500000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 7 years then the rate drops to 6.40%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? S Do not use dollar signs or commas in your answer. Include two decimals. in your answer.10.- The Arriba México foundation donated $2,000,000 to a charitable institution. The money was deposited in an account that pays an annual interest rate of 14% compounded monthly. How much can the institution withdraw each month if the withdrawals are in advance and intended to be indefinite? options: 22,621.15 25,018.24 24,999.95 23,064.2535 The City of Sandwich purchased a swimming pool from a privateoperator as of April 1, 2020, for $400,000, of which $200,000 wasprovided by a one-time contribution from the General Fund, and$200,000 was provided by a loan from the First National Bank, securedby a note. The loan has an annual interest rate of 6 percent, payablesemiannually on October 1 and April 1; principal payments of $100,000are to be made annually, beginning on April 1, 2021. The city has acalendar year as its fiscal year. During the year ended December 31,2020, the following transactions occurred related to the City ofSandwich Swimming Pool:1.The amounts were received from the City General Fund and the FirstNational Bank.2.A loan was provided in the amount of $125,000 from the Water UtilityFund to provide working capital.3.The purchase of the pool was recorded. Based on an appraisal, itwas decided to allocate $100,000 to the land, $200,000 toimprovements other than buildings (the pool), and $100,000 to…
- The Philippine Association of Board Examiners (PABE) desires to award a P3, 600 scholarships annually to deserving students for as long as its scholarship fund shall last. The fund was started July I, 1977 by a donor in the amount of P 18, 000. The PABE invested this sum at that time at 8% per annum and plans on adding P600 each year to the fund flow its dues starting July 1, 1978 for as long as awards are made. a. For how many years, starting July I, 1978 can scholarship be awarded? b. What will be the balance in the fund after the last award is made?Use Table 12-2 to solve. Ron Sample is the grand prize winner in a college tuition essay contest awarded through a local organization's scholarship fund. The winner receives $6,000 at the beginning of each year for the next 5 years. How much (in $) should be invested at 6% interest compounded annually to award the prize? (Round your answer to the nearest cent.)Determine the amount of money required to set up a charitable endowment that pays the amount P each year indefinitely for the annual interest rate r compounded continuously. P = $13,000, r = 6% STEP 1: We start with the present value of a perpetuity, which is defined as follows. Present value = P r Here, represents the size of each annual payment in dollars, and represents the annual interest rate. STEP 2: Calculate the present value. (Round your answer to two decimal places.)
