An endowment fund is providing an annual scholarship of P50,000 for the first five years, P60,000 for the next five years, and P90,000 thereafter. The fund will be established today and will award the first scholarship after a year. The fund earns 4.5 % annual interest. Find the present worth of this cost.
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- An endowment fund is to provide an annual scholarship of P4,000 for first 5 yrs, P6,00 for the next 5 yrs, and P9,000 thereafter the fund will be established 1 yr before the first scholarship is awarded. If the fund earns 12% interest, what sum must be deposited?A fund is to be donatedby a wealthy man to provide annual scholarships to deserving students. The fundwill grant P120,000 each year for the first 5 years, P 30,000 per quarter forthe next 5 years and P10,000 each monththereafter . The scholarship will start one year after the fund is established.What is the amount of the donation if i = 12% compounded annually?Determine the amount of money required to set up a charitable endowment that pays the amount P each year indefinitely for the annual interest rate r compounded continuously. P = $13,000, r = 6% STEP 1: We start with the present value of a perpetuity, which is defined as follows. Present value = P r Here, represents the size of each annual payment in dollars, and represents the annual interest rate. STEP 2: Calculate the present value. (Round your answer to two decimal places.)
- 8. An education fund will offer a P40, 000 annual scholarship for the first five years, a P60, 000 scholarship for the next five years, and a P90, 000 scholarship after that. One year before the first scholarship is given out, the fund will be established. Interest is paid on the fund at a rate of 4 1/2 percent. a. What sum of money must be deposited now? b. What is the amount left in the fund after fifth P40, 000 was withdrawn? c. What is the amount left in the fund after the fourth P60, 000 was withdrawn?A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P120,000 each year for the first 5 years, P 30,000 per quarter for the next 5 years and P10,000 each month thereafter. The scholarship will start one year after the fund is established. What is the amount of the donation if i = 12% compounded annually?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
- A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P50,000 for each year for the first 5 years at 8% compounded monthly, P80,000 for each year for the next 5 years at 8% compounded quarterly, and P100,000 each year thereafter at 8% compounded semi-annually interest,. The scholarship will start one year after the fund is established. What is the amount of the donation?Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,500,000, r = 4.7%, compounded semiannually for 25 yearsFind the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $1,900,000, r = 9%, compounded monthly for 25 years
- Deakin University wants to establish a trust fund that will provide a perpetual annual scholarship of $15 000. It can invest the money at 11% per annum compounding. How much do they need to invest? Select one: a. $136 363.64 b. $140 500.50 c. $125 506.35 d. $130 340.75Isaac Lopez Integrated School needs P20,000,000 to pay building renovation for 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. What are the necessary payments if money is worth 18% per annum? O a. P2,754,074.56 O b. P2,754,704.56 O c. P2,754,407.56 O d. P2,754,047.56An endowment fund is set up today. It provides payments of $1500 a year for 6- years (first payment one year from now) followed by $2000 a year thereafter forever. If the interest rate is j1 = 6%, how much is needed to be deposited (invested) today? (Answer to nearest dollar