A woman is considering giving an endowment to a university in order to provide payments of P55,000, P85,000, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?

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: An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a…

A: The instructor is planning to retire in one year and wants to get P25000 each year for 15 years. The…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: When the annuity withdrawal is at beginning of period, it is knows as annuity due and when annuity…

Q: A person wants to have $2,000 available to spend on an overseas trip four years from now. If such…

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

Q: 1. You decide to give SCU an endowment that will pay out $50 K per year forever, with a continuously…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually.…

A: Given: workings:

Q: One university needs some maintenance. The owner of the university decides to deposit $400000 in an…

A: Present worth can be calculated as below Present worth = Cash flow / (1+r)^n It can also be…

Q: A business tycoon is planning to provide a scholarship to one deserving student that will provide a…

A: Given: Monthly allowance = P3,000 Interest rate = 12%

Q: Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each…

A: The Present Value of perpetuity: A constant cash flow that occurs periodically forever is known as…

Q: How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank…

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

Q: A man wishes his son to receive P200, 000 ten years from now. What amount  should he invest if it…

A: Here we are given the future value which is P200,000. We have to find the amount to be invested…

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…

Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…

A: Investment is way to spend your money to get the required return out of it in a certain period of…

Q: How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for…

A: Present Value of withdrawals = (Withdrawal 1 / (1+interest %)^1) +(Withdrawal 2 / (1+interest %)^2)+…

Q: A business man must fund an account for him to pay the maintenance of the building after it shut…

A:

Q: Jasica Parker would like to have ​$48,000 to buy a new car in 7 years. To accumulate $48,000 in 7…

A: The monthly invested payment can be calculated using PMT function in excel PMT(rate, nper, pv, [fv],…

Q: Cecilia wants to pay for her daughter's college for four years by banking 20,000 dollars per year.…

A:

Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…

A: Loan is an agreement between two persons as lender (who gives money) and borrower (who takes money)…

Q: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: In this we have to calculate present value of all to get initial deposit.

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Calculation of annual cash flow from savings plan: Answer: A couple must save $13,254.85 each year…

Q: In five years, ₱1.8M will be needed to pay for a building renovation. In order to generate this sum,…

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

Q: If I lend $40,000 to my friend at 8% per year simple interest, what compound interest rate would…

A: Given: Amount = $40,000 Interest rate = 8% Years = 10

Q: If Karen placed an amount of 9,700 Php in an investment that pays an interest rate of 12%,…

A: Investment = 9700 Php Interest rate = 12% Compounding = Semi annually Future value = 50,000 Php

Q: Ronnie Cox has just inherited $27,000. How much of this money should he set aside today to have…

A: the formula for calculating present value =  A = P ( 1 + i ) n  P = A / ( 1 + i )n     A = $18000…

Q: A father wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

Q: what amount should she deposit now?

A: Present Value is the value of a cash flow at the current time. The value of money multiplies with…

Q: 1. You decide to give SCU an endowment that will pay out $50 K per year forever,with a continuously…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Answer the question and draw a cashflow diagram. A man inherited a regular endowment of P10,000…

A: Given: Amount = P10000 Years = 10 Interest rate = 14%

Q: Eve expects to pay the lump sum of $500,000 five years from now. How much should she set aside now,…

A: Lumpsum needed after 5 years = $500000 Amount to set aside now = X Interest rate = 8% in year 1, 10%…

Q: a. How much would Phoebe have to invest today, in one lump sum, to end up with $45,000 in seven…

A: Time Value of Money (TVM) concept is used to find out the Present Value or Future Value of the given…

Q: Walt is evaluating an investment that will provide the following cash flows at the end of each of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: 1)A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%,…

A: Investment = 9700 Php Future value = 50,000 Php Interest rate = 12% Compounding = Semi annual

Q: A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: 1. Man wishes his son to receive 200,000 in 10 years from now. What amount should he invest if it…

A: Present value can be defined as the current value of the amount that will be received in future from…

Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…

A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…

Q: Mrs. Enriquez would like to invest 150,000 pesos for 10 years. She went to four known banks and…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: A family wants to have a $160,000 college fund for their children at the end of 15 years. What…

A: Using excel PMT function

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: A1 = 2000 per year N = Time Period = 5 years End of year deposits A2 = 3000 per year Time Period = 3…

Q: What is the size of the scholarship payments that students at a college would receive at the end of…

A: The scholarship amount will be the quarterly interest earned on such endowment fund

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: A woman is considering giving an endowment to a university in order to provide payments of P5000 and…

A: The movement of money into and out of a business is referred to as cash flow. The cash flow…

Q: A person is preparing for his retirement and placed 50,000 Php in a time deposit with 6.5% interest…

A: Value of investment 50,000 Time of investment Now Annual Interest Rate 6.50% Compounding…

Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…

A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: Jack Walter recognizes the value of saving part of his income. He has set a goal to have $35,000 in…

A: Given: Total goal amount = 35000 period = 10 years interest rate = 6%, compounded semi annually

Q: A man was offered a Land Bank Certificate with a face value of P100,000 which bears interest of 8%…

A: Face value of certificate = P 100,000 Interest rate = 8% Semi annual interest payment =…