Imagine you are a philanthropist who would like to donate to a charity that provides shelter and assistance to homeless individuals. You would like to donate enough money to the charity to ensure that they can provide shelter for 12 homeless individuals every year in perpetuity. The cost of providing shelter per individual is $60 per day. If your investment fund pays a return of 2% per year, how much do you need to donate to the charity now so that they can provide shelter for 1200 individuals every day in perpetuity? Enter your answer to the nearest cent (two decimal places)

Q: 5%, what amount must you donate to endow the scholarship?

A: Present Value of Perpetuity: It refers to the present worth of annual cash flows having an infinite…

Q: eremiah Wood wants to set up a fund to pay for his daughter's education. In order to pay her…

A: Amount needed in 4 years (CF1) = $25,000 Amount needed in 5 years (CF2) = $26900 Amount needed in 6…

Q: how long will it take him to save up the needed funds for his store's upgrades?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…

A: Future planning is needed for the education of the children and you have to save for that.

Q: A charitable foundation wants to help schools buy tablet computers. The foundation plans to donate…

A: Compound Interest is a kind of interest wherein the interest is earned.The amount you earn on…

Q: 8 years ago, you started donating $484 to a charity organization every year. You plan to continue to…

A: Given:   Value of annual donations $484 Number of contributions until now 8 Number of expected…

Q: Jeremiah Wood wants to set up a fund to pay for his daughter's education. In order to pay her…

A: The lump sum payment today is calculated using the following present value equationWhere, CFi is the…

Q: wealthy man wants to provide annual scholarships to deserving students. The fund will grant P100,000…

A: The present value of money is required to get the amount of scholarship required and must according…

Q: You want to endow a scholarship now that will pay $12,000 per year forever, starting the first award…

A: An annuity is a series of periodic payments provided in exchange for a lump sum payment. It is…

Q: Richard and Sue wants to provide full funding for their 3 year old daughter who is expected to start…

A: First, we need to calculate the future cost of a 4-year college education. The current cost is…

Q: young married couple wishes to set up a fund that can be used for various home equipment purchases…

A: Value today is the present value of cash flow from the fund based on the time and cash flow from the…

Q: You want to create a college fund for a child who is now 4 years old. The fund should grow to…

A: Step 1 Present Value A future sum of money or stream of cash flows' present value, or PV, is their…

Q: An Alumna of Eastern Mediterranean University wanted to set up an endowment fund that would award…

A: Present value of Perpetuity refers to the present worth of investment today on which the periodic…

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: You have had plenty of success in your career so you decide to make a donation to Nichols that will…

A: Annual scholarship = $1000 Discount rate = 4.8% Time = forever

Q: Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: uy has nothing saved for college. He wants to pay $42,000.00 per year to the school for 4 years. The…

A: College fees=$42000Period=4 yearsInterest rate-8.46%

Q: $23,000 per year forever. XYZ wants the foundation to make the first annual $23,000 scholarship…

A: Solution: Calculation of annual payment(annuity)   a) Present value of regular annual payment of…

Q: You would like to establish a fund that will be used to offer a scholarship each year to a worthy…

A: Present value refers to the discounted value of the future cash flow. These future cash flows are…

Q: uppose you want to begin a college fund for your newborn child. You hope to accumulate $45,000 by 20…

A: Step 1 A future sum of money or stream of cash flows' present value, or PV, is their current value…

Q: A University is offering a charitable gift program. A former student who is now 50 years old is…

A: An annuity is a financial product or contract that provides a series of regular payments or income…

Q: Three Smiles, Inc. wants to ensure that its charity dental practice can go on forever.  They…

A: Solution:- When an amount grows by an equal rate forever, it is known as constant growth rate…

Q: ou want to endow a scholarship now that will pay $7,000 per year forever, starting the first award…

A: Annual payment = $7,000Discount rate = 6%

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: You decided to fund a charity for ten years. The first payment will be made one year from today (at…

A: The concept of money's time worth indicates that any sum of money is worth more currently than what…

Q: How do you solve this by hand, not excel?

A: The answer states the computation of present value of contributions

Q: You are a young personal financial adviser. Molly, one of your clients approached you for…

A: Future Value Required = 330,000 Time Period = 15 years*12 = 180 months Interest % = 7%/12 = 0.5833%…

Q: magine you are a philanthropist who would like to donate to a charity that provides shelter and…

A: Cost of providing money forever depends on the number of persons and also number of days provided…

Q: A generous alum would like to establish an endowment that would sponsor a student organization's…

A: Perpetuity refers to an instrument that provides the holder with periodic cash flows forever, i.e.,…

Q: You want to create a college fund for a child who is now 3 years old. The fund should grow to…

A: given data  future value = 60,000 time period = 15 years interest rate = 6% discounting to find…

Q: Donna wants to create a scholarship fund by saving for several years before the fund starts making…

A: Future value of money is the amount of deposit done and amount of compounding interest accumulated…

Q: local businessman has set up a school fund that will last forever that can earn 3.1% annually. How…

A: The given problem deals with the concept of perpetuity. A perpetuity is a series of uniform cash…

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: Assume you are working with the foundation to fund a scholarship in your name. Currently, the…

A: Since payment is due for indefinite period, we need to use PV of perpetuity formula to calculate…

Q: You and your sister are planning a large anniversary party 3 years from today for your grandparents'…

A: The PV of an investment refers to the cumulative value of the cash flows after they have been…