Five years ago, an alumnus of a university donated $52,408.51 to establish a permanent endo scholarships were awarded 1 year after the contribution. If the amount awarded each year, the is $4,193.01, the rate of return earned on the fund is closest to:
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- DETAILS PREVIOUS ANSWERS How much interest would they earn over the life of the account? $ 115706 24 Determine the value of the fund after 2, 4, and 6 years. 2 years $189627.86 ✓ 4 years $393750.99 x 6 years $2770424.23 X A corporation creates a sinking fund in order to have $850,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 3.7% compounded quarterly? (Round your answers to the nearest cent.) $ 22946.68 Additional Materials ebook TEAFM2 F.3.026. How much interest was earned during the third quarter of the 5th year? $ 474257 11 X MY NOTES PRACTICE ANOTHERu.A fund donated by wealthy person to IECEP to provideannual scholarships to deserving ECE students. Thefund will grant Php 5 000 for each of the first five years,Php 8 000 for the next five years and Php 10 000 foreach year thereafter. The scholarship will start oneyear after the fund is established. If the fund earns 8%interest, what is the amount of the donation? 3. Ifpayments are made at end of the interest period. 4. Ifpayments are made at beginning of the interestperiod. include a cash flow diagra,(1) Five years ago, an alumnus of a university donated $55,996.8 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year after the contribution. If the amount awarded each year, that is, the interest on the endowment, is $4,017.55, the rate of return earned on the fund is closest to: (2) For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest to: Year 0 1 2 3 4 NCF, $ −40,000 +16,767 −29,000 +25,000 +53,519 According to Descartes’ rule of signs, the possible number of rate of return values for the net cash flow series ++++−−−−−−+−+−−−++ is: 6 7 4 8
- 2. An endowed scholarship is one funded by a single deposit in a permanent scholarship account by a successful alum. The endowment deposit amount remains untouched and unchanged in the scholarship account. The interest accumulated each year is taken out and paid to a deserving student at the end of each year in a scholarship award. If an endowment earns 3.25% annual interest compounded monthly, a. What is the effective interest rate? b. What would the annual scholarship award be if the amount of the endowment was $300,000?Give typing answer with explanation and conclusion A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: The student can invest $7,500.00 today and then will be paid a 8.00% APR return starting on his 65th birthday (i.e For a $10,000 investment, a 9% rate would mean $900 per year). The program will pay the cash flow for this investment while you are still alive. You anticipate living 20.00 more years after your 65th birthday. The former student wants a return of 5.00% on his investments, but would like to consider this opportunity. Using the student's desired return, what is the value of this deferred annuity today on his 50th birthday?Q) A donor wishes to endow a scholarship to a certain university in the name of a certain professor. The scholarship is to provide $80,000 per year for first 10 years and $100,000 per year for the following 90 years. If the university expects to be able to earn 10% per year compounded continuously on the endowment, how much must the donor give now if the first scholarship is to be given 3 years from now? Solve it early but correctly. Handwriting or typed answer only not in excel work.
- An alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at i = 8% per year is closest to: (a) $190,820 (b) $122,280 (c) $127,460 (d) $132,040Person X donated $ 50 000 to a foundation. This donation is distributed to the needy at the end of each year from the donation fund with an effective annual interest rate of 5%. It is distributed as 2 000 USD at the end of each year for the first 10 years and 3 000 USD in the following times. Payments continue until the fund is reset, but less than 3 000 USD remained in the fund in the last year. Accordingly, how many years have passed until the fund is reset and how much is the remaining money in the fund in the last year? ThanksKwantlen Polytechnic University received a semi-annual donation of $50,000 per year for the next fifteen years, with the first payment being received today. Given a discount rate of 5.5% compounding semi-annually, determine the present value of the donation. Select one: a. $529,482 b. $1,012,465 x c. $1,040,308 d. $1,500,000
- 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.Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.93% p.a. compounded half - yearly (j2 = 4.93% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? Question 9Answer a. 139208.15 b . 283816.22 c. 278013.64 d. 281847.77Sam 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 j4-3.81% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (b) Assume that the fund's earnings rate rate has changed from 4-3.81% p.a. to j4-3.56% p.a. one year before the first scholarship payment. How much does Sam 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)? Question 9Answer a. 78309.64 b. 74276.05 C. 71226.96 d. 75395.75