A permanent endowment at the University of Alabama is to award scholarships to engineering students two times per year (end of June and end of December). The first awards are to be made beginning 5-1/2 years after the $20 million lump- sum donation is made. If the interest from the endowment is to fund 100 students each semester (i.e., twice a year) in the amount of $5000 each semester, what semiannual rate of return must the endowment fund earn

Q: What amount of money invested today at 15% interest can provide the following scholarships: P30,000…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: The endowment amount worth after 10 years can be calculated with the help of Future value of Annuity…

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A: In this we have to calculate monthly interest rate and than calculate future value FACTOR and get…

Q: You plan to set up an endowment at your alma mater that will fund $180,000 of scholarships each year…

A: To determine the present value of perpetual annuity payout of $180,000 at 6.4% interest rate.

Q: 4. What amount of money invested today at 10% interest can provide the following scholarships: P…

A:

Q: 3) An alumni association wants to establish an endowment that can provide $1million annually for…

A: Equivalent annual cost  The annual cost of owning, running, and maintaining an asset over the course…

Q: A donor wishes to endow a scholarship to a certain university in the name of a certain professor.…

A: In this we need to find annual effective interest rate and find out value today.

Q: What amount of money invested today at 10% interest can provide the following scholarships: P30,000…

A: The present value method is the method of finding out how much all the future cash flows are worth…

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A: This is used in the case of a future annuity – suppose an equal sum of money is invested in the bank…

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A: a.) Following spreadsheet for the cash flows calculation with cell reference     Total gilt will be…

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A: The time worth of cash draws from the possibility that reasonable financial backers like to get cash…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time…

Q: An alumnus establishes a perpetual endowment fund to help Saint Louis University. What amount must…

A: Given: Income to be produced = $100,000 Interest rate = 8%

Q: A fund for replacement of a machinery in a plant must have P 30,000 at the end of 9 years. An equal…

A: Final amount needed (F) = P 30000 Semiannual deposit (S) = P 2965 Number of deposits (n) = 8 Let r =…

Q: $23,000 per year forever. XYZ wants the foundation to make the first annual $23,000 scholarship…

A: Solution: Calculation of annual payment(annuity)   a) Present value of regular annual payment of…

Q: ). A wealthy businessman wants to start a permanent fund for supporting research directed toward…

A: Withdrawal in perpetuity = 100,000 Withdrawal from year 6 Interest Rate = 8% N = 6 = Number of…

Q: Creekside Engineering wants to establish an engineering scholarship in honor of its founder, Jane…

A: Capitalized cost is referred as an expenses that are added based on the cost of the fixed asset on…

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A: Gift Value = $150,000 Interest Rate = 4%

Q: The Nobel Prize Foundation   recognizes its  achievers by giving the equivalence of  $10,000,000.00…

A:

Q: P30,000 worth of scholarship grant every year to selected engineering students. The initial amount…

A: initial deposit=100000 rate of interest =5% Compounding semiannual  Amount of scholarship =30000…

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A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: How much can be paid in scholarship at the beginning of each month if $200000 is deposited in a…

A: The amount to be paid monthly can be calculated from the function of present value of annuity due

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Monthly endowment (M) = P 10000 Interest rate = 14% compounded semiannually Let's find the effective…

Q: How much money should be deposited each quarter into the fund so that a new storage building can be…

A: The future value of annuity formula would be used to calculate the periodic quarterly payment.…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Fund grant for each year = P120,000 for 5 years Grant each quarter = P30,000 for next 5 years  Grant…

Q: Question 1 of 7 A local university received a $150,000.00 gift to establish an endowment fund for a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determine the amount of money required to set up a charitable endowment that pays the amount P each…

A: The present value of perpetuity is calculated as the ratio of the cash flows and the interest rate.…

Q: A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 for the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: How much must be deposited in a fund at the end of each six months for 12 years to raise P25,000 by…

A: Future value (F) = P 25,000 Annual interest rate = 5% Semi annual interest rate (r) = 5%/2 = 2.5%…

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A: Using excel PV function

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A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Q10. James decided to fund a school in Orange County in perpetuity. The first payment will be made…

A: Present value refers to the discounted value of future cash flows. A perpetuity is a series of equal…

Q: An endowment fund is to provide an annual scholarship of P4,000 for first 5 yrs, P6,00 for the next…

A: We should compute the present value of all planned future payments and that has to be deposited.…

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A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Q) A donor wishes to endow a scholarship to a certain university in the name of a certain professor.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 8. An education fund will offer a P40, 000 annual scholarship for the first five years, a P60, 000…

A: Present value (PV) of all the cash flows is the sum of the money deposited now. It is an example of…

Q: If a college freshman invests a $10000 gift at 8% per annum compounded quarterly, how much can be…

A: Present value of investment (PV) = $10000 Interest rate = 8% Quarterly interest rate (r) = 8%/4 = 2%…

Q: (1) Five years ago, an alumnus of a university donated $55,996.8 to establish a permanent endowment…

A: Note : We will answer the first question as exact one is not specified. The question is based on…

Q: What is the size of each scholarship if the first one is awarded on September 1, 2016? Need well…

A: Effective semiannual interest rate = (1 + 0.08/4)^2 -1 = (1 + 0.02)^2 -1 = (1.02)^2 -1 = 0.0404 ~…

Q: Find the present worth of this cost.

A: An endowment fund is the fund set aside and invested, the earnings of which will be utilized for the…

Q: A foundation supports an annual campus seminar by using the earnings of a $50,000 gift. It is felt…

A: Information Provided: Gift = $50,000 Interest rate for 10 years = 10% Interest rate post 10 years =…

Q: what is the amount of the annual scholarship?

A: Compound interest is calculated on a total of previously earned interest and the original…

Q: You've received a $100,000 education grant and want to deposit the lump sum and withdraw an equal…

A: PV=A×1-11+RNR pv=principal r=rate of interest per period n=number of period

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…