While looking around your grandfather's attic for an upcoming ugly sweater party, you discover a historical treasure: the solid gold Brockport Golden Eagle statue, a relic from the founding days of the College! Recognizing its worth, you sell it to the shop on Main Street. With the windfall, you put the funds into a perpetuity trust, supplying Mortimer Hall freshmen with $400 worth of pizzas every year, forever. with a 5% interest rate for the trust, what was the payday you received from the pawnshop for the Golden Eagle? a- $8,000 b- $10,000 c- $5,000 d- $6,000 e- Intermediate

You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 4 years, you will give the school $600,000. The first payment will occur 4 years from today. If the interest rate is 7.6% per year, what is the present value of your gift? The PV of the gift is $ (Round to the nearest dollar.)

In a family members will, they would like to establish a perpetual trust to provide for the maintenance of a school's learning lab. If the annual maintenance is fixed at $12,500 per year and the trust can earn 5% interest, how much money must be set aside in the trust?

After you purchase the house, you decide to do some remodeling in the kitchen.  You ask your parents if they would lend you money, but you insist on paying them interest.  The agreement is that they will lend you $6000.00 at a simple interest rate of 3% per year.  Once the interest amounts to $300, you agree to pay them back the $6000 plus the $300 interest.      Supoose that the $6000.00 was invested in a savings account that paid 2.5% interest compounded quarterly.      How much interest would be earned after 3 years? Be sure to show all of your work.

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 7%. The parents deposit $2000 on their daughter's first birthday and plan to increase the size of their deposits by 5% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then what is the amount available for the daughter's college expenses on her 18th birthday?

Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 4% per year. The parents deposit $ 10,000 on their daughter's first birthday and plan to increase the size of their deposits by 2% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to: $1,012,908 $ 147,489 $500,000 $298,785

Chen's family is saving for a home renovation that they would like to pay for with cash. They would like to begin the renovations at the end of 12 years. At the end of each year, the family deposits money into an account that earns 5% compounded annually. At the end of year 1, they save $10,000. They plan to increase the amount that they save by a constant amount, X. What will be the correct value of X, assuming their renovation costs $150,000?

After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $42000 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). The first deposit will be made a year from today. In addition, your grandfather just gave you a $32,000 graduation gift which you will deposit immediately (t = 0). If the account earns 9% compounded annually, 12 years from now you will have $_______________.

If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that count is earning 10% annually, how much will you have in your college savings fund on your 18th birthday?

After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). The first deposit will be made a year from today. In addition, your grandfather just gave you a $32,000 graduation gift which you will deposit immediately (t = 0). If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?   Group of answer choices $286,936 $298,892 $292,914 $297,486 $310,848