In order to create an endowment, which pays Rs 500,000 per year, forever, how much money must be set aside today in the rate of interest is 10%? If the first payment of Rs 500,000 will be received after 3 years, what will be present value of such cash payment?

Q: I receive $10,000 a year in perpetuity. The original investment was $100,000. What is my rate of…

A: The perpetuity is reflection of stream of cash flows which will be continuing forever. The…

Q: A property will provide $24,400 at the end of each year forever. If its value is $245,000, what must…

A: Annual Cash Flow = $24,400Perpetuity Value (Property Value) = $245,000

Q: A person buys a piece of lot for 100,000 pesos down payment and 10 deferred semi-annual payments of…

A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

Q: If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your…

A:

Q: What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000…

A: Interest rate = 15% Annual cash flow in first 6 years = P30,000 Annual cash flow in next 6 years =…

Q: A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: What semiannual sinking fund payment would be required to yield $47,000 seven years from now? The…

A: Sinking fund (SF) is an account in which a fixed amount is deposited periodically and interest is…

Q: buy a house for Rs50 lakh and immediately make cash payment of Rs 10 lakh. You finance the balance…

A: amount of loan taken=50-10=40interest rate =12%time period=20 years or 240 months

Q: what amount of money invested today at 10% interest can provide the following scholarships: 34,000…

A: The question is based on the concept of Financial Management.

Q: What is the present value if $200 to be received 8 years from now if money in hand can be invested…

A: present value if $200 to be received 8 years from now if money in hand can be invested at 12% can be…

Q: Arona would like to receive $15,820 each year for the next 5 years, starting today.  Then she hopes…

A: Since payment is due today or at the beginning of the year, this is annuity due problem.  For…

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: If your trust fund promises to pay you RM25,000 on your 24th birthday (6 years from today) and earns…

A: Promised amount (F) = RM 25000 n = 6 years r = 9%

Q: petuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100…

A: Perpetuity is payment forever and there are annual payments forever period depending on time and…

Q: If Mr. Peter Parker gets a pension contribution each year BDT 20000  , how many years it will need…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A trust fund amounting to ₱6700000 earns 7.4% annual interest. If ₱150,000 is to be withdrawn at the…

A: Amount of trust fund is P6,700,000 Interest rate is 7.4% Time period is 5 years Amount of withdrawl…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…

A: Here, to calculate time period we have to use the compound interest formula .   A = P 1+r100n…

Q: The sum P350,000 will be needed at the end of 3 years. If money can be invested at 5% compounded…

A: We need to fist determine the semi annual end of period payment that will accumulate to the desired…

Q: A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3…

A: A perpetuity is a series of equal payments that go on forever. The amount invested to receive the…

Q: In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this…

A: Here we will have to find the future value of the annuity at the end of the 3rd year and then…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: 5. If P50,000.00 is deposited each year for 10 years, how much annuity can a person get annually…

A: Annuity means a finite number of payments which are the same in size and made in equal intervals of…

Q: I want to have 6000000 when I retire on April 18, 2055. I plan on making annual equal payments…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

Q: 1. Find the present value of an annuity of P33,000 payable at the end of each year if the first…

A: Given: Year Amount 1 0 2 0 3 P33,000 4 P33,000 5 P33,000 6 P33,000 7 P33,000 8…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: Your company wants to create a scholarship program that will cost $17,000 dollars a year. They will…

A: To calculate the investment amount required today we will use the below formula   Investment amount…

Q: An endowment fund is set up today. It provides payments of $1500 a year for 6- years (first payment…

A: The question is based on the concept of present value for annuity and perpetuity payment .

Q: (a)Calculate the present value of an annuityof £1000 paid at the endof each year for 15 yearswith an…

A: Calculation of PV of Annuity, PV of Annuity Due and PV of Annuity Compounded Continuously: Excel…

Q: If Mr. Ram decides to Invest Rs 20,000 p.a. at the end of every year for 6 years compounding at 8%…

A: Investment = Rs. 20,000 p.a time period = 6 years interest rate = 8%

Q: A fund is to be created which pays out a scholarship of £7,000 every year in perpetuity. The first…

A: Perpetuity are funds that are paid over the whole life period of annuities. Value of perpetuity is…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…

Q: You deposit 20,000 today into a fund paying (i)=8%. From this fund, you receive 10 payments of R,…

A: Computation of R:

Q: Find the future value if $7000 is invested for 6 years at 11% compounded annually. (Round your…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 4. You wish to accumulate RM100,000 at the end of 20 years. To do this, you need to deposit an equal…

A: We need to use future value of ordinary annuity formula to calculate annual payment to achieve goal.…