Question 1 of 7 A local university received a $150,000.00 gift to establish an endowment fund for a student scholarship. The endowment fund earns interest at a rate of 3.00% compounded semi-annually. The university will award the scholarship at the end of every quarter, with the first scholarship being awarded four years from now. Calculate the size of the scholarship that the university can award. Scholarship = $0.00 Round to the nearest cent

Question 1 of 7 A local university received a $150,000.00 gift to establish an endowment fund for a student scholarship. The endowment fund earns interest at a rate of 3.00% compounded semi-annually. The university will award the scholarship at the end of every quarter, with the first scholarship being awarded four years from now. Calculate the size of the scholarship that the university can award. Scholarship = $0.00 Round to the nearest cent

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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Problem 4 – On 1/1/21 Holiday Charity receives a $300,000 pledge to be received $50,000 every 12/31 for the next 6 years. Required; a. Calculate the present value of the pledge assuming an appropriated discount rate of 3%. b. Prepare the necessary journal entries on the following dates; 1/1/21 12/31/21
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Question 1 What is the amount of the payments that Dwight Schrute must make at the end of each of 8 years to accumulate a fund of $86,200 by the end of the 8th year, if the fund earns 8% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Dwight's payment at the end of each year must be ?
I ....-I MY NOTES ASK YOUR TEACHER A state lottery commission pays the winner of the Million Dollar lottery 40 installments of $25,000/year. The commission makes the first payment of $25,000 immediately and the other n = 39 payments at the end of each of the next 39 years. Assume that the balance on deposit with the bank earns interest at the rate of 4%/year compounded yearly. Determine the present value (in dollars) of the 39 future payments. (Round your answer to the nearest cent.) 24 Determine how much money (in dollars) the commission should have in the bank initially to guarantee the payments. (Round your answer to the nearest cent.) 24 MY NOTES ASK YOUR TEACHER The Martinezes are planning to refinance their home. The outstanding balance on their original loan is $125,000. Their finance company has offered them two options. (Assume there are no additional finance charges. Round your answers to the nearest cent.) Option A: A fixed-rate mortgage at an interest rate of 3.5%/year…
Answer is B
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hs QUESTION 9 A wealthy donor has given $400,000 to a university and specifies that it is to be used to give annual scholarships for the next 25 years. If the university can hearn 5.5% interest, how much can they give in scholarships each year? Round your answer to the nearest dollar. Summarize the information provided, stating the interest rate in a decimal form. Po = r = N = k = Identify the formula you will use to solve by writing the letter of the formula here: A. A=P(1+rt) B. PN = C. PN = d ((1 + F) ³²-1) + (F) D. P₁ = (₁-(₁ + 1)^~^) + (1) Solve the problem and give your answer here:
Solve this accounting but not use of excel
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Question 2 Hounslow Youth (HY), a charity organization, would like to create a scholarship fund that will give the local college £50,000 in every two years. However, it turns out that the maintenance of the scholarship fund (banking fees, etc.) will cost the college £1,000 every year. HY plans to make the first payment as soon as possible and the maintenance fees will be paid at the year-ends. The interest rate is 6% APR with annual compounding. a) What is the Effective Semi-annual Rate? b) What is the Net Present Value of the scholarship fund to the local college?

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