A firm wants to sponsor a new engineering lab at a local university. This requires $4.0M to construct the lab, $1.5M to equip it, and $750,000 every 6 years for new equipment. What is the required endowment if the university will earn 8% interest on the funds?
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- A firm wants to sponsor a new engineering lab at a local university. This requires $4M to construct the lab, $1.5M to equip it, and $750,000 every 6 years for new equipment. What is the required endowment if the university will earn 8% interest on the funds? Answer: $6,777,957You want to create an endowment income of $35,000 per year for Oxtordshire Charity, but the Tirst payment will not be made until the 4th year's time. a. If you can earn a return of 8% APR on your investment, and if the payment is made on a monthly basis, calculate how much to invest now? $5,133,086.81 B. $4,133,086.81 $5,233,086.81 $4,233,086.81 $5,250,000.81Deakin University wants to establish a trust fund that will provide a perpetual annual scholarship of $15 000. It can invest the money at 11% per annum compounding. How much do they need to invest? Select one: a. $136 363.64 b. $140 500.50 c. $125 506.35 d. $130 340.75
- An engineering school has just completed a new engineering complex worth $50 million. A campaign targeting alumni is planned to raise funds for future maintenance costs. which are estimated at $2 million per year. Any unforeseen costs above $2 million per year would be obtained by raising tuition. Assuming that the school can create a trust fund that earns 8% interest annually. how much has to be raised now to cover the perpetual string of $2 million annual costs?1. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%?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?
- Isaac Lopez Integrated School needs P20,000,000 to pay building renovation for 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. What are the necessary payments if money is worth 18% per annum? O a. P2,754,074.56 O b. P2,754,704.56 O c. P2,754,407.56 O d. P2,754,047.565) A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 11%?Jackson Clinic is starting an endowment fund to pay for the expenses of a allied health training program. The expenses are $2,500,000 per year, and the program needs to be endowed for 50 years. Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the initial size of the endowment?
- 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 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?(b) As an added benefit to staff, Insignia intends to start a Trust Fund to assist the children of its employees with university tuition via scholarships. The intention of the company is to assist 4 different students annually with a $10,000 grant each. The grant is expected to be increased by 5% annually and provide scholarships indefinitely. Required: i. Assuming this fund will earn 10% interest per annum, calculate the value of the fund today. ii. Insignia decides to fund this amount (calculated in (i)) via monthly deposits over the next 12 months in an enhanced savings account, after which the scholarships will begin. Assuming a return of 12%, compounded monthly, how much would Insignia need to deposit monthly over the next year, to achieve this goal? ii. Compute the effective annual rate on this enhanced savings account.