8 years ago, you started donating $484 to a charity organization every year. You plan to continue to donate in the next 6 year(s). The discount rate is 7.3%. what is the present value of your donations?

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: New parents wish to save for their newborn's education and wish to have $40,000 should the parents…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the…

A: Solution:- When an amount is invested, it earns interest.  The amount initially invested is called…

Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: You want to endow a scholarship now that will pay $12,000 per year forever, starting the first award…

A: An annuity is a series of periodic payments provided in exchange for a lump sum payment. It is…

Q: Exactly six years ago, Jay started investing $10,500 per year in an account that earned 5.00% p.a.…

A: To calculate how much Jay will have in his account exactly seven years from today, we can break down…

Q: if you deposit $500/month into a college fund with APR 4.5%, how much do you have after 18 years…

A: The future value of an ordinary annuity is the accumulated value of an equal amount of deposits made…

Q: You have just celebrated your birthday. Your uncle, has set up a trust fund for you, which will pay…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6)…

A: Calculate the amount at the end of 5 years as below: Resultant Table: Hence, amount at the end of…

Q: A charity will be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Annual payment for first 5 years (A) = $120000 Quarterly payment for next 5 years (Q) = $30000…

Q: The Clark family began savings for their child's college 18 years ago. Each year they contributed…

A: Future value refers to the total value of an investment or deposit at a specified date in the…

Q: The Clark family began savings for their child's college 17 years ago. Each year they contributed…

A: The future value refers to the future value of all cash flows compounded at interest rate for the…

Q: Your friend just won the lottery. He has a choice of receiving $100, 000 at the end of each year for…

A: Present value is the concept that a specific amount of money to be received or paid in the future is…

Q: For the next 7 years, you expect to receive equal payments at the beginning of each year. Today, you…

A:

Q: Frank just won the lottery! Starting one year from now, he will recieve $66, 000 per year for the…

A: Long-term investment decisions are frequently made by organizations when starting new initiatives,…

Q: Carrie grandfather owns a farm. The farm earned $270,000 this year. The profits are expected to grow…

A: The question is based on the concept of valuing an investment using the Gordon Growth Model (also…

Q: You would like to establish a fund that will be used to offer a scholarship each year to a worthy…

A: Present value refers to the discounted value of the future cash flow. These future cash flows are…

Q: Your grandfather placed $5,000 in a trust fund for you.  In 12 years, the fund will be worth $9,500.…

A: Initial Value = $5,000Final Value = $9,500Number of years (n) = 12We need to calculate the annually…

Q: Your grandparents just gave you a gift of $3,000. You are investing this money for 10 years at 3…

A: Solution:- In simple interest method, amount of interest earned = Principal amount x Annual interest…

Q: ou want to endow a scholarship now that will pay $7,000 per year forever, starting the first award…

A: Annual payment = $7,000Discount rate = 6%

Q: A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be…

A: Present value is an estimate of the present value of future cash flows received, discounted at an…

Q: The Clark family began savings for their child's college 11 years ago. Each year they contributed…

A: Here,Annual Contribution for 11 years is $8,000Addition Contribution in second years is…

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: How do you solve this by hand, not excel?

A: The answer states the computation of present value of contributions

Q: A University is offering a charitable gift program. A former student who is now 50 years old is…

A: An annuity refers to a payment plan that provides periodic payments in exchange for a lump sum…

Q: our grandparents just gave you $40,000 for your 21st birthday. You want to set aside some of that…

A: The objective of the question is to determine how much of the $40,000 must be set aside to meet the…

Q: magine you are a philanthropist who would like to donate to a charity that provides shelter and…

A: Cost of providing money forever depends on the number of persons and also number of days provided…

Q: Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be…

A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2

Q: Assume you are working with the foundation to fund a scholarship in your name. Currently, the…

A: Since payment is due for indefinite period, we need to use PV of perpetuity formula to calculate…

Q: New parents wish to save for thier newborn's education and wish to have $36,000 at the end of 18…

A: The computation of yearly payment and interest as follows: Working note: Hence, the interest is…

Q: Y our great aunt put some money in an account for you on the day you were born. This account pays 8%…

A: Deposited of money at time of born is a present value and 5,033.83 is a future value of investment…

Q: How much much money is in this account on your 18th birthday (after your grandma made her deposit)?

A: We need to use the FV formula for $150 on day on your birth and for $20 you found on your 8th…