A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3 months. How large should their endowment fund be if invested at X% (choose the rate) compounded quarterly?
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A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3 months. How large should their endowment fund be if invested at X% (choose the rate) compounded quarterly?
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- An endowment fund is to provide an annual scholarship of P4,000 for first 5 yrs, P6,00 for the next 5 yrs, and P9,000 thereafter the fund will be established 1 yr before the first scholarship is awarded. If the fund earns 12% interest, what sum must be deposited?How much can be paid in scholarships at the end of each half-year if $210,000 is deposited in a trust fund if interest is 4.5% compounded semi-annually?You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. If the school’s endowment discount rate is 6%, what amount must you donate to endow the scholarship?
- An endowment fund is providing an annual scholarship of P50,000 for the first five years, P60,000 for the next five years, and P90,000 thereafter. The fund will be established today and will award the first scholarship after a year. The fund earns 4.5 % annual interest. Find the present worth of this cost.How much can be paid in scholarship at the beginning of each month if $231,500 is deposited in a trust fund if interest is 5.6% compounded monthly?You plan to set up an endowment at your alma mater that will fund $180,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 6.4 percent, compounded annually, how much do you need to donate to the university today, so that the first scholarships can be awarded beginning one year from now? (Round answer to 2 decimal places, e.g. 52.75.)
- You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?You want to endow a scholarship that will pay $12,000 per year forever, starting one year from now. If the school's endowment discount rate is 5%, what amount must you donate to endow the scholarship?A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the end of each year. The first award will be in three years. How much money must she set aside today in order to fund the bursary? Assume that the money will earn a nominal interest rate of 4% compounded annually.
- You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an investment which pays 9% compounded monthly. What size annual scholarship can be awarded if the first scholarship will be awarded in one year?A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P120,000 each year for the first 5 years, P 30,000 per quarter for the next 5 years and P10,000 each month thereafter. The scholarship will start one year after the fund is established. What is the amount of the donation if i = 12% compounded annually?If a college freshman invests a $10000 gift at 8% per annum compoundedquarterly, how much can be withdrawn at the end of every quarter to use up the fund exactly after four years of college. Treat this as the present value of anaannuity-immediate.