None 8. A successful alumni of UNO wants to establish a scholarship that will pay 2 engineeringstudents $4000 per semester per year (assume the students can enroll for only 2 semestersa year). If the university earns 6% on endowment accounts, what amount must bedeposited today by the alumni? (Hint: first calculate the total amount that is required eachyear for 2 students for 2 semesters)

To calculate the amount that must be deposited today by the alumni, we need to find the present…

Answered: a year). If the university earns 6% on…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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(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.
(c) As part their responsible business initiative, Micron Industries wants to establish a trust fund to assist under-privileged students in their local community in pursuing 4-year undergraduate degree programs. The tuition fee is estimated to be $35,000 for the first year but is expected to increase by 5% per year thereafter. Required:i. Assuming this trust fund will earn 7.5% interest per annun, calculate the amount required at the start of one student’s college journey to fund his/her full tuition. ii. If Micron Industries would like to sponsor the first student in two years’ time and they currently have $125,000 earmarked for investment, what annual rate of interest is required to accumulate the amount needed as calculated in part (i)?
3. A donor wishes to endow a scholarship to a certain university in the name of a certain professor. The scholarship is to provide $50000 per year for the first 8 years and starting 11 years from now $200000 every 3 years (forever). If the university expects to be able to earn a nominal interest of 16% per year compounded continuously on the endowment, how much must the donor give now if the first scholarship is to be given 1 year from now?
You plan to set up an endowment at your alma mater that will fund $180,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 6.4 percent, compounded annually, how much do you need to donate to the university today, so that the first scholarships can be awarded beginning one year from now? (Round answer to 2 decimal places, e.g. 52.75.)
You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?
You want to create an endowment income of $35,000 per year for Oxtordshire Charity, but the Tirst payment will not be made until the 4th year's time. a. If you can earn a return of 8% APR on your investment, and if the payment is made on a monthly basis, calculate how much to invest now? $5,133,086.81 B. $4,133,086.81 $5,233,086.81 $4,233,086.81 $5,250,000.81
You want to endow a scholarship that will pay $11,000-per year forever, starting one year from now. If the school's endowment discount rate is 9%, what amount must you donate to endow the scholarship? The amount you must donate is $_______. (Round to the nearest cent.)
You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year forever, starting one year from now. If the school's endowment discount rate is 4 %4%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?
Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:
To offer scholarships to children of employees, a company invests $15,000 at the end of every three months in an annuity that pays 8% compounded quarterly a. How much will the company have in scholarship funds at the end of ten years? b. Find the interest Click the icon to view some finance formulas. a. The company will have sin scholarship funds (Do not round until the final answer. Then round to the nearest dollar as needed.)
Baffin College has an endowment that pays one lucky student $7,500 a year forever, of course, It is a different student each year. Long-term yields are 10 percent. a. How much is currently required to fund the endowment? Required fund b. If the endowment will not commence until five years from today, how much is required? Required fund
What amount of money (in Php) invested today at 11.97% interest can provide the following scholarships: Php 35,389 at the end of each year for first 8 years, Php 45,100 each year for the next 8 years, and Php 55.060 thereafter? Note: Please show the complete solution with the formulas used as it is needed for my reviews. Thank You!

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a year). If the university earns 6% on endowment accounts, what amount must be deposited today by the alumni? (Hint: first calculate the total amount that is required each year for 2 students for 2 semesters)