Question 8 of 11A local university received a $150,000.00 gift to establish an endowment fund for astudent scholarship. The endowment fund earns interest at a rate of 4.00%compounded semi-annually. The university will award the scholarship at the end ofevery quarter, with the first scholarship being awarded seven years from now. Calculatethe size of the scholarship that the university can award.Scholarship =Round to the nearest cent

Gift Value = $150,000 Interest Rate = 4%

Answered: A local university received a…

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

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The University is given a gift of $500000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 7 years then the rate drops to 6.40%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? S Do not use dollar signs or commas in your answer. Include two decimals. in your answer.
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The will of a wealthy philanthropist left P5, 000,000 to establish a perpetual charitable foundation. The foundation trustees decided to spend P1, 200,000 to provide facilities immediately and to provide P100, 000 of capital replacement at the end of each 5 year period. If the invested funds earned 12% per annum, what would be the year end amount available in perpetuity from the endowment for charitable purposes? (I ONLY NEED CASHFLOW DIAGRAM PLEASE PROVIDE BELOW!)
The will of a wealthy philanthropist left P5,000,000 to establish a perpetual charitablefoundation. The foundation trustees decided to spend P1,200,000 to provide facilitiesimmediately and to provide P100,000 of capital replacement at the end of each 5-yearperiod. If the inverted funds earned 12% per annum, what would be the year-endamount available in perpetuity from the endowment for charitable purposes?
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NEED ASAP

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