Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program.  The expenses are $925,000 per year, and the program is expected to last 5 years.  Assuming payments are made at the end of each year and the interest rate is 6% per year, the size of the initial endowment should be___________

You are chairperson of the investment fund for the Continental Soccer League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $340,000 after fifteen years at a 12 percent annual rate (30 payments). The first payment into the fund is to take place six months from today, and the last payment is to take place at the end of the fifteenth year. Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.   a. Determine how much the semiannual payment should be. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)     Semi-annual payment      On the day after the sixth payment is made (the beginning of the fourth year), the interest rate goes up to an annual rate of 14 percent. This new rate applies to the funds that have been accumulated as well as all future payments into the fund. Interest is to be…

You decide to give SCU an endowment as a lump sum of $1,000,000. You would like to specify that this will pay out an income stream of $R per year, with an annual increase of $1000 per year, continuing forever. Assume that you can lock in an 5. interest rate of 5%. What value of R would match your lump sum donation of $1,000,000?

You are chairperson of the investment fund for Middle Hockey League. You are asked to set up a fund of quarterly payments to be compounded quarterly to accumulate a sum of $410,000 after 10 years at an 8 percent annual rate (40 payments). The first payment into the fund is to occur three months from today, and the last payment is to take place at the end of the 10th year. Use Appendix A and Appendix C. (Round "FV Factor" to 3 decimal places. Round your intermediate calculations to the nearest whole dollars. Round the final answers to the nearest whole dollar.) a. Determine how much the quarterly payment should be. Quarterly payment $5,437.57 ✪ b. On the day after the sixteenth payment is made (the end of the fourth year) the interest rate goes up to a 12 percent annual rate, and you can earn a 12 percent annual rate on funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded quarterly on all funds. Determine how much the revised…

6.17 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? 6.18 Identify three possible difficulties with rate of return analyses compared to PW, AW, or FW analyses.

An Engineering Research foundation wishes to set up a trust fund earning 10% compounded annually to provide P 2,613,522 for the lot and building and P 1,443,776 for the initial equipment of a Structural Engineering and Materials Laboratory; pay P 405,996 for the annual operating cost every year; and pay P 528,758 for the purchase of new equipment and replacement of some equipment every 7 years beginning 7 years from now. How much money should be paid into the fund for the building and equipment and to pay for perpetual operation and equipment replacement?

You are chairperson of the investment fund for the Continental Soccer League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $360,000 after fifteen years at a 8 percent annual rate (30 payments). The first payment into the fund is to take place six months from today, and the last payment is to take place at the end of the fifteenth year. Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.   a. Determine how much the semiannual payment should be. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)           On the day after the sixth payment is made (the beginning of the fourth year), the interest rate goes up to an annual rate of 10 percent. This new rate applies to the funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded semiannually on all funds.…

Elaine is the CEO of Vandelay Industries and wants to create a sinking fund to make a purchase of new technology in three years. She anticipates this capital expense will be $20,000. If the sinking fund earns at an annual rate of 5% compunded quarterly, determine the quarterly installment that should be deposited into the fund.

Donna wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save $222,000.00 per year for 6 years. Her first savings contribution is expected in 1 year. What is the expected amount of the scholarship payment that the fund will make in 7 years if the fund is expected to have a return of 7.86 percent per year, make annual scholarship payments that grow annually by 2.34 percent forever, and make its first scholarship payment in 7 years? O $71,691.25 (plus or minus 10 dollars) $89,580.58 (plus or minus 10 dollars) $96,621.62 (plus or minus 10 dollars) $77,326.18 (plus or minus 10 dollars) Onone of the answers are within 10 dollars of the correct answer 0000

A schools parent council wants to setup up a scholarship fund.  How much needs to be invested today so that a scholarship of $1000 can be awarded every year for the next 10 years.  Interest on the fund is 7% and will be compounded annually