A grateful alumnus wishes to provide a scholarship of $1,800 per year for 4 years to his alma mater, with the first scholarship awarded on his 59th birthday. If the money is worth an annual rate of 5.1%, compounded annually, how much money must he donate on his 49th birthday? Round your answer to the nearest cent. a. $1,362.43 b. $2,601.05 C. $5,764.90 d. $4,069.80

A grateful alumnus wishes to provide a scholarship of $1,800 per year for 4 years to his alma mater, with the first scholarship awarded on his 59th birthday. If the money is worth an annual rate of 5.1%, compounded annually, how much money must he donate on his 49th birthday? Round your answer to the nearest cent. a. $1,362.43 b. $2,601.05 C. $5,764.90 d. $4,069.80

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Question 1 of 7 A local university received a $150,000.00 gift to establish an endowment fund for a student scholarship. The endowment fund earns interest at a rate of 3.00% compounded semi-annually. The university will award the scholarship at the end of every quarter, with the first scholarship being awarded four years from now. Calculate the size of the scholarship that the university can award. Scholarship = $0.00 Round to the nearest cent Question 2 of 7 William took a loan of $7,900 from his parents to purchase equipment for his hair salon. They agreed on an interest rate of 3% compounded quarterly on the loan. What equal monthly payments made at the end of each period will settle the loan for 5 years if the first payment is to be made 3 years and 1 month from now? 2$ 0.00 Round to the nearest cent
Vijay
am. 122.
How much money should a grandparent deposit in a college savings fund today for their newborn grandchild in order to provide for 4 uniform annual end of period withdrawals of $20,000 each? The first withdrawal occurs at the end of the 17th year. Use average amount return for the fund = 12% a. $8,847 b. $9,909 c. $11,098 d. $12, 418 Please use excel and show formulas.
O You just received a $5,000 gift from your grandmother which you have decided to save and then gift to your own grandchildren 50 years from now. How much additional money will you gift if you earn 6.5 percent interest rather than 6 percent interest over the next 50 years? (Assume annual compounding.) O $39,318.09 O $38,211.16 O $24,432.62 O None of these answers are correct O $39,464.79
Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 3.87% p.a. compounded half-yearly (2-3.87% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? a. 212767.99 b. 106479.89 c. 216169.57 d. 215020.17
Rr.8.
Help pls thank you!
Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.57% p.a. compounded half-yearly (j2=4.57% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? Question 9 Answer a. 127913.37 b. 255507.69 c. 260410.57 d. 258749.57 Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.57% p.a. compounded half-yearly (j2=4.57% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (b) Assume that two years after the donation, Mike needs to withdraw $1,000,000 from the fund and use the remaining amount to provide an annual scholarship in perpetuity. The time of the first scholarship will be unchanged (3.5 years after the date of the donation). What is the new annual…
Mike wants to donate S5, 000, 000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 5.37% p.a. compounded half-yearly (j2 = 5.37% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places) ? Question 9 Answer a. 313037.32 b 306010.79 с. 153267.24 d. 310649.70
A family wishes to accumulate 50,000 in a college education fund at the end of 20 years. If they deposit 1,000 in the fund at the end of each of the first 10 years and 1,000+ X in the fund at the end of each of the second 10 years, find X if the fund earns 8% effective.
You borrow 112000 for 10 years from a bank in order to renovate your flat. The effective interest rate charged by the bank is 7.6% per annum. The loan is to be repaid by level annual repayments, paid in arrears. Calculate the annual repayment. Give your answer to two decimal places.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS