A non-profit has put $360, 000 into an account to help fund the programming at a community center for 4years. The account earns 2.1 % interest. Answer the questions below. Round answers to 2 decimal places.(a) If the non-profit withdraws an equal amount of money at the start of each year (and interest iscompounded annually), how much would the maximal yearly withdrawls be?$(b) What would the total amount for the community center be?$(c) If the non-profit withdraws an equal amount of money at the start of each month (and interest iscompounded monthly), how much would the monthly withdrawls be?$(d) What would the total amount for the community center be in this case?$

Time Value of Money (TVM) :TVM is a financial principle that states that the value of money today is…

Answered: (a) If the non-profit withdraws an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a tithe of $35000 is made to a local church. the money is to be invested and the accumulated amount used to purchase a new youth group bus. how long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly?
The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.)
10.- The Arriba México foundation donated $2,000,000 to a charitable institution. The money was deposited in an account that pays an annual interest rate of 14% compounded monthly. How much can the institution withdraw each month if the withdrawals are in advance and intended to be indefinite? options: 22,621.15 25,018.24 24,999.95 23,064.25
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Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be P43322 each year for the first 5 years, P53709 each year for year 6 through 10 and P64659 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be? INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE TO 5 DECIMAL PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.
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Ron Sample is the grand prize winner in a college tuition essay contest awarded through a local organization's scholarship fund. The winner receives $5,000 at the beginning of each year for the next 3 years. How much (in $) should be invested at 8% interest compounded annually to award the prize? (Round your answer to the nearest cent.) $ Need Help?
The trustees of a college have accepted a gift of $100000, but are required to deposit it in an account paying 8% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 4 years. a. Find the amount of each withdrawal. b. Find the amount of each withdrawal if the money must last 7 years.
On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund is expected to be worth $400,000 on January 1, 2010, what annual rate of interest is being earned on this fund?
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…
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Clearlake Optical has a $50,000 note that comes due in 5 years. The owners wish to create a sinking fund to pay this note. If the fund earns 4.5% compounded semiannually, how much must each semiannual deposit be? (Round your answer to the nearest cent.) ___$

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