2. A college received a contribution to its fund of P2 million. They can never touch the principal, but they can use the earning. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year? How much can the college earn if the interest income will be received after 3 years compounded annually?

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: What is the payback if the investment is $22,000 and the after tax benefits are: Years 1 & 2 =…

A: Investment amount = $ 22,000

Q: A donor wants to fund a growing perpetuity that will pay $14,164 per year to a local museum,…

A: Yearly payment = $14,164 Growth rate = 5% Interest rate = 9%

Q: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

Q: Beginning next year, a foundation will support an annual seminar on campus by using the interest…

A: Time, value of money refers to a concept used for estimating the present value of an asset that will…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: When the annuity withdrawal is at beginning of period, it is knows as annuity due and when annuity…

Q: Use the following to answer 19-20: You are going to receive a $16,000 scholarship at the end of 3…

A: "As per the Q&A guidelines, if multiple questions are asked at once then the answer for the…

Q: Sebastopol Movie Theater will need $180,000 in 3 years to replace the seats. What deposit should be…

A: Future Value  $          1,80,000.00 Time Period 3 Interest Rate 0.80%

Q: The Fillmore Fan Company sets aside $28,500 from each quarter's profits and invests the money in a…

A: Variables in the question:PMT=$28500Rate=4.75%N=3 yearsWorking Note#1Computation of quarterly…

Q: purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a…

A: Th amount to be received from the annuity each month depends on interest rate earned  by the fund…

Q: A firm's stock is selling for $71. The next annual dividend is expected to be $2.00. The growth rate…

A: Given that, Current Market price of the stock (P0) = $ 71 Expected Dividend for next year (D1) = $ 2…

Q: A college received a contribution to its endowment fund of $2 million. It can never touch the…

A: Formula: Amount earned = Endowment fund*Interest rate

Q: Red Deer College wants to set up a scholarship for students in its business programs such that at…

A: Present value of money is the amount required today for the future needs based on the time value of…

Q: An elite private college receives large donations from successful alumni. The account that holds…

A: Given Current amount is $955,000,000. Rate is 5.33%

Q: Just in preparation for his retirement, a man intended to invest today into a bank with an interest…

A: Annuity:  An annuity is the series of payments which is received or paid for a certain period of…

Q: 0. The The Hendrix Company needs to repay a note payable of S $100,000 into a savings account at the…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

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: If the university’s College of Engineering can earn 5% on its investments, how much should be in its…

A: The formula used as follows: PV=A1-11+rnr

Q: Mercy Care would like to establish a scholarship for a local college. They would like to give $1,000…

A: Cash flow is the cash generated by the firm in that year. It increases or decreases based on the…

Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…

A: in this we have to find out effective annual interest rate and from that we will get annual…

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: You decide to give SCU an endowment as a lump sum of $1,000,000. You would like to specify that this…

A: Present Value of Perpetuity = 1,000,000 Income Stream = R Annual Increase in Annuity = 1000 per year…

Q: How much is the interest after two years using the simple interest?

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Income Statement

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company for a given period. In other words, it presents the financial performance/profitability of a business over a specified accounting period.