A college received a contribution to its endowment fund of $2 million. It can never touch the principal but can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?
Q: A donor established a new scholarship that will pay $5,000 every 6 months to a deserving Kelley…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: 3) An alumni association wants to establish an endowment that can provide $1million annually for…
A: Equivalent annual cost The annual cost of owning, running, and maintaining an asset over the course…
Q: A small business owner has $57,485.03 set aside in a fund to be used for a project that will take 10…
A: Annuity refers to series of equalized payments that are either made at start or end of specific…
Q: A corporation creates a sinking fund in order to have $950,000 to replace some machinery in 11…
A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…
Q: Maintenance money for a new building at a college is being solicited frompotential alumni donors.…
A: a.) Following spreadsheet for the cash flows calculation with cell reference Total gilt will be…
Q: A charity will be donated by a wealthy man to provide annual scholarships to deserving students. The…
A: Annual payment for first 5 years (A) = $120000 Quarterly payment for next 5 years (Q) = $30000…
Q: Northeastern costs approximately $50,000 per year for a four-year program, whether completed in four…
A: Cost of per year for four-year program (pmt) = $50,000Interest rate (rate) = 10%Number of Years…
Q: An alumnus establishes a perpetual endowment fund to help Saint Louis University. What amount must…
A: Given: Income to be produced = $100,000 Interest rate = 8%
Q: A private not-for-profit entity receives three large cash donations: • One gift of $84,000 is…
A: Donor restrictions can be both permanent and temporary and can be time-restricted or purpose…
Q: A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 10…
A: Excel formulas which are used for calculations:-
Q: 0, 000 of capital replacement at
A: The cash flow diagram is shown below,
Q: how much can we paid in scolarships at the end of half year if $90.000 is deposited in a trust fund…
A: Amount Deposited = $90,000 Annual Interest Rate = 8.5%Semiannual Interest Rate = 8.5% / 2Semiannual…
Q: Creekside Engineering wants to establish an engineering scholarship in honor of its founder, Jane…
A: Capitalized cost is referred as an expenses that are added based on the cost of the fixed asset on…
Q: A local university received a $150,000.00 gift to establish an endowment fund for a student…
A: Gift Value = $150,000 Interest Rate = 4%
Q: A corporation creates a sinking fund in order to have $440,000 to replace some machinery in 8 years.…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: What is the amount of the donation that must be given to the IU Foundation today to endow this…
A: The term perpetuity is a modified annuity which denotes an infinite series of payment at equal gaps…
Q: he officers and Board of Directors of the Philippine Institute of Civil Engineers desire to award a…
A: According, to the question The officers and Board of Directors of the Philippine Institute of Civil…
Q: You are preparing a statement of activities for the University of Richland, a private not-for-profit…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Having achieved immense success since graduating from university, you have set up an endowment fund…
A: First annual contribution (X) = $100000 Constant rate of growth (d) = - 2% (Declining rate) Interest…
Q: The will of a wealthy philanthropist left P5, 000,000 to establish a perpetual charitable…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: a college begins a capital campaign to create a fund to provide scholarships to worthy students, If…
A: Given: Scholarship amount (PMT)=$200000Interest rate =7% or 0.07
Q: A wealthy benefactor wants to establish an endowment to pay forever the salary of one university…
A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…
Q: Linda O’Shay deposited $50,000 in a savings account as a perpetual trust. She believes the account…
A: Future value is value of the current cashflow at future date compounded at the specified rate.…
Q: After a retiring from a successful business career, you would like to make a donation to your…
A: Given, The Donation made is $2,000,000 Returns is 5.5%
Q: You decide to give SCU an endowment as a lump sum of $1,000,000. You would like to specify that this…
A: Present Value of Perpetuity = 1,000,000 Income Stream = R Annual Increase in Annuity = 1000 per year…
Q: Beginning next year, a foundation will support an annual seminar on campusby using the interest…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: A non-government agency is funding annual seminar on campus by using earnings of a $100,000 gift. It…
A: PV is the present worth of cash flows that are expected to occur in the future.
Q: A recent alumnus of your university gifted money to the school to fund annual scholarships for…
A: This question require us to compute the amount of gift which will provide $50000 annual scholarship…
Q: Camosun College has just received a donation of $50,000. The donor has stipulated that the funds…
A: The term "annual bursary" represents a monetary award provided by colleges and other authorities to…
Q: A recent alumnus of your university gifted money to the school to fund annual scholarships for needy…
A: The conceptual formula used:
Q: A wealthy donor has given $400,000 to a university and specifies that it is to be used to give…
A: Here, Present value (P0)= $400,000 Interest rate (r) = 0.055 Number of years (N) = 25 years No. of…
Q: (1) Five years ago, an alumnus of a university donated $55,996.8 to establish a permanent endowment…
A: Note : We will answer the first question as exact one is not specified. The question is based on…
Q: he Alumni Association of a university desires to award 730,000 pesos scholarship annually to…
A: According to the question, The Alumni Association of a university desires to award 730,000 pesos…
Q: The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW…
A: Return Objective: The fund's return objective must focus on an approach named Total Return Approach.…
Q: A foundation supports an annual campus seminar by using the earnings of a $50,000 gift. It is felt…
A: Information Provided: Gift = $50,000 Interest rate for 10 years = 10% Interest rate post 10 years =…
Q: d 12% per annum, what would be the year end amount available in perpetuity from the endowment for…
A: The cash flow diagram is shown below as,
Q: s decided to spend P1,200,000 to provide facilities immediately and to provide P100,000 of capital…
A: Given: The initial amount = $5 million The spendable amount = $1.2 million The amount of capital…
Q: Beginning next year, a foundation will supportan annual event on campus with the earnings of…
A: Present value is defined as the current value of the future sum of amount of the cash flows given a…
Q: Centuries ago, rich families in the province of friesland established a fund to further welfare and…
A: Given information : Amount of fund = 12 million Interest rate = 6% Since the principal is kept to…
Q: An endowed scholarship is one funded by a single deposit in a permanent scholarship account by a…
A: EAR is the actual return earned on an investment by the investor taking into account the effect of…
Q: A foundation was endowed with $15,000,000 in July 2014. In July 2018, $5,000,000 was expended for…
A: Endowment amount on July 2014 = $15,000,000 amount expended for facilities = $5,000,000 operating…
Q: Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members get…
A: Private not for profit organization It is the private foundation which is engaged in social or…
A college received a contribution to its endowment fund of $2 million. It can never touch the principal but can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Y University received a contribution to its endowment fund of $ 5 million. It can never touch the principal but can use the earnings. At an interest rate of 5 percent, how much can the college earn to help its operations each year?2. A college received a contribution to its fund of P2 million. They can never touch the principal, but they can use the earning. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year? How much can the college earn if the interest income will be received after 3 years compounded annually?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%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%?
- 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%?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%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%? Give me answer all questions(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?Camosun College has just received a donation of $50,000. The donor has stipulated that the funds should be used to fund an ongoing annual bursary with the first payment given out in one year. If the money is invested into an account earning 3.71% compounded annually (j1), how much will the annual bursary be? Your Answer:The University is given a gift of $500000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 7 years then the rate drops to 6.40%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? S Do not use dollar signs or commas in your answer. Include two decimals. in your answer.
- You give $2.1 million to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift. You are guaranteed an 8% return on your investment. a. What would be the income from your gift? (Enter your answer in dollars, not millions of dollars.) Annual income $ b. How much of your gift would be a tax deduction? (Enter your answer in dollars, not millions of dollars.) Tax deduction $(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.Assume UMASS Boston just received 10 million dollars from a major donor and the school's fund can earn a 4.5% interest rate (compounded yearly). If the school uses the interest to payout yearly scholarships, how much can the school payout in yearly scholarships due to this donation? (Please use at least 5 decimal places and do not use $ symbol in the answer)