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.
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- The Pithybottoms want to make a donation to set up a scholarship trust fund at Hinose College. The fund is to support payments of $5,000 at the end of every three months in perpetuity. If the fund earns 7.5% compounded quarterly, how much must they donate?Emily Bennett is setting up an annuity for a memorial scholarship. What lump sum does she need to set aside today at 7% annual interest to have the scholarship pay $ 30,000annually for 10 years?Granny Gums has established a scholarship at the Martin College of Dentistry. She will make deposits into an endowment account that pays 12% per year based on the following schedule.If the first scholarship is to be awarded 1 year after the first deposit is made and thereafter the award will be given indefinitely, what is the scholarship amount?
- Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $2,750 to a deserving finance student. How much must she donate today in order for the first payment to to be given out in one year? Assume an interest rate of j2=4%.Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $2,250 to a deserving finance student. How much must she donate today in order for the first payment to start in one year? Assume an interest rate of j=4%. Your Answer: AnswerAllain Dupre wants to set up a scholarship fund for his school. The annual scholarship payment is to be $3,600 with the first such payment due four years after his deposit into the fund. If the fund pays 4.4%compounded annually , how much must Alain deposit?
- Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4=4.12% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? (b) Assume that the fund's earnings rate rate has changed from j4=4.12% to j4 = 3.87% one year before the first scholarship payment. How much does Emma need to add to the fund at that time (one year before the first scholarship payment) to ensure that scholarship amount will be unchanged (rounded to two decimal places)? (a) What is the amount of the annual scholarship (rounded to two decimal places)? a. 44494.20 b. 46355.87 C. 41840.92 d. 43772.21 (b) Assume that the fund's earnings rate rate has changed from 4-4.12% to 4-3.87% one year before the first scholarship payment. How much does Emma need to add to the fund at that time (one year before the first…Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4=5% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)?Don Solomon wants to set up a scholarship program with his alma mater. If P941498 is needed per year for the scholars, how much must he invest today at 1.7% compounded annually to fund the scholarship program in perpetuity? Round your answer to 2 decimal places.
- Provide manual solutions for below mentioned problems. A social worker deposits a uniform amount of P12,000 at the end of each year in order to get a lump sum of money by the time she will retire at the end of 20 years. If the compound amount factor for this annuity is equal to 36.78559. 1. Compute the nominal interest rate.2. Determine how much will she receive at the end of 20 years.3. Determine the worth of the sinking fund factor in this fund invested. Answer. 1. 6% 2. P441,427.08 3. 0.027184557A wealthy graduate of a local university wants to establish a scholarship to cover the full cost of one student each year in perpetuity at her university. To adequately prepare for the administration of the scholarship, the university will begin awarding it starting in three years. The estimated full cost of one student this year is $32,000 and is expected to stay constant in real terms in the future. If the scholarship is invested to earn an annual real return of 10 percent, how much must the donor contribute today to fully fund the scholarship? Please do not give solution and formulae in image format.. thankuA wealthy graduate of a local university wants to establish a scholarship to cover the full cost of one student each year in perpetuity at her university. To adequately prepare for the administration of the scholarship, the university will begin awarding it starting in three years. The estimated full cost of one student this year is $32,000 and is expected to stay constant in real terms in the future. If the scholarship is invested to earn an annual real return of 10 percent, how much must the donor contribute today to fully fund the scholarship? Note: Negative value should be indicated by a parenthesis. > Answer is complete but not entirely correct. $(240,421) X Contribution