A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P50,000 for each year for the first 5 years at 8% compounded monthly, P80,000 for each year for the next 5 years at 8% compounded quarterly, and P100,000 each year thereafter at 8% compounded semi-annually interest,. The scholarship will start one year after the fund is established. What is the amount of the donation?

Q: Mike wants to donate $5, 000, 000 to establish a fund to provide an annual scholarship in…

A: The objective of the question is to calculate the amount of the annual scholarship that can be…

Q: A wealthy benefactor wants to establish an endowment to pay forever the salary of one university…

A: Annual salary=$96000Tuition books and fees=$2000 x 10 per quarterAmount required today

Q: A generous benefactor to DePaul plans to make a one-time endowment which would generate $15,000 of…

A: Perpetuity in finance is the annual or regular stream of cash flows that is paid for an indefinite…

Q: Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The…

A: Time = t = 4 YearsPayment = p = $16,000Interest Rate = r = 4.5%

Q: Asif received a bonus of $10 000, which he immediately invested in a fund earning 9.25% compounded…

A: Future value of the amount is the amount of deposit done and amount of interest accumulated over the…

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: A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3…

A: A perpetuity is a series of equal payments that go on forever. The amount invested to receive the…

Q: To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual”…

A: Future Value (FV)= $210,000 per year Time period (n)= 13 years  Annual return (i)= 4.1 percent…

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: 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 sells some property She will be paid a lump sum of $80.000 in 4 years. Until then, the…

A: 1. Note: In the given question it is assumed that given interest is per annum interest rate.…

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: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…

Q: A generous alum would like to establish an endowment that would sponsor a student organization's…

A: Perpetuity refers to an instrument that provides the holder with periodic cash flows forever, i.e.,…

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: Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity.…

A: To determine the amount of the annual scholarship that Mike can establish, we need to calculate the…

Q: How much can be paid in scholarship at the beginning of each month if $231,500 is deposited in a…

A: The concept of present value indicates that the value of a future amount of money is less than its…

Q: Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity.…

A: The time value of money states that because of its potential for growth, money has a higher value…

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.