The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW assets totalling $5 million to add to OLD assets of $5 million. The Directors of the endowment anticipates a spending rate of 5%. Inflation is expected to be 3% annually. Calculate the return objective State the fund’s risk tolerance
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- The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW assets totalling $5 million to add to OLD assets of $5 million. The Directors of the endowment anticipates a spending rate of 5%. Inflation is expected to be 3% annually.
- Calculate the return objective
- State the fund’s risk tolerance
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- You have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota. You wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in four years. If you choose not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually. Select one: a. 10.67% per year O b. 50.00% per year 12.50% per year O d. There is not enough information to answer this question. C.MetaYou have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota. You wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in four years. If you choose not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually. Question 7Select one: a . 10.67% per year b. 50.00% per year c. 12.50% per year d. There is not enough information to answer this question.Greendale Community College has established a scholarship that will provide awards at the start of every 6 months for the foreseeable future. To fund these, $1,470,000 is being placed in a trust fund earning 9.0% compounded annually. How much is each scholarship payout? $0.00 Round to the nearest cent
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- Beginning next year, a foundation will support an annual seminar on campus by using the interest earnings on a $100,000 gift it received this year. It is determined that 6% interest will be realized for the first 10 years but plans should be made to anticipate an interest rate of only 4% after that time. What amount should be added to the foundation now to fund the seminar at a level $10,000 per year into infinity?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?A business man must fund an account for him to pay the maintenance of the building after it shut down in 10 years. The costs until the business shutdown is part of the operating cost of the business while the maintenance costs starts in 10 years at 23,000 annually. Draw the cash flow diagram and solve on how much money should be deposited if the fund earns an interest of 12 percent?
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