You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for four years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 6% p.a. compounding monthly, the present value of the scholarship today is closest to: Group of answer choices a) $42,474 b) $31,330 c) $42,580 d) Need more information to answer the question e) $32,789

You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for four years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 6% p.a. compounding monthly, the present value of the scholarship today is closest to: Group of answer choices a) $42,474 b) $31,330 c) $42,580 d) Need more information to answer the question e) $32,789

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for three years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 9% p.a. compounding monthly, the present value of the scholarship today is closest to: Group of answer choices A. $32,789 B. $31,446 C. $31,330 D. Need more information to answer the question E. $42,474 I already calculated it and I got C ($31,330), is it true? I want to match it with my formula and the steps to solve it.
You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 3% per 6-month period, how much money will you have to donate ← today to endow the scholarship? You will need to donate $ (Round to the nearest dollar.) CIT
You've been awarded a scholarship that pays $220 a month for 5 years while you are in college. At a 5 percent annual discount rate with monthly compounding, what are these payments worth to you when you first start college? Assume the first payment will be received at the end of the month. O $11,657.96 O $13,200.00 O $11,427.96 $11,938.96 O $10,365.00
A business tycoon is planning to provide a scholarship to one deserving student that will provide a monthly allowance of P3,000.00 indefinitely, beginning one month from now. How much should be invested today to cover the scholarship if: a.) the interest rate is 12% b.) the interest rate is 12% and the first monthly allowance is given 1 year from now.
Your Company wish to establish a PhD University Scholarship of GHc 2,000 paid at the end of each year for deserving students as an alumnus at the School you attended. You would like to make a lump-sum gift to the school to fund the scholarship into infinity. The school's treasurer assures you that they will earn 7.5% every year continually. Required: a) How much must your company give the school today to fund the proposed scholarship programme? b) If you allow the amount of the scholarship to increase annually after the first end of year by 3% per year, how much must you give the school now to fund scholarship programme?
You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?
What amount of money (in Php) invested today at 11.97% interest can provide the following scholarships: Php 35,389 at the end of each year for first 8 years, Php 45,100 each year for the next 8 years, and Php 55.060 thereafter? Note: Please show the complete solution with the formulas used as it is needed for my reviews. Thank You!
Suppose you are starting a PhD program. The university has agreed to waive your tuition, cover all of your living expenses, and pay you an additional stipend of $2,000 at the end of each month, as long as you teach one course per semester over the course of five years. If your savings account is able to earn 5.5% per year for the five years that you will be in this program, how much will you have accumulated in your savings account by the end of the program if interest is compounded on a monthly basis? $104,705.67 $137,761.65 $34,899.71 $866,900.74
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To offer scholarships to children of employees, a company invests $15,000 at the end of every three months in an annuity that pays 8% compounded quarterly a. How much will the company have in scholarship funds at the end of ten years? b. Find the interest Click the icon to view some finance formulas. a. The company will have sin scholarship funds (Do not round until the final answer. Then round to the nearest dollar as needed.)
Listen How much money must be deposited into an account paying interest at 5% compounded annually in order to fund a yearly scholarship of $2,000 with the first payment in one year and continuing forever? Your Answer: Answer
A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $14,000 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan will provide $25,000 per year for four years What retum is this investment offering? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) Return 0% References eBook & Resources Worksheet Section: 4.3 Compounding Periods Difficulty: 3 Challenge Section: 4.4