fter a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school's endowment pool and the returns generated from the donation will upport the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the alary will be made annually. art A) You can make a donation today (t=0) in the amount of $1,800,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the Ollowing is closest to the annual salary payment that can be made as a result of your donation? OA. $72,000 B. $1,800,000 OC. $99,000 OD. $327,273 Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this new requirement, and assuming the first salary distribution will still occur one year from today, what is the starting salary (at t=1) that can be supported with your $1,800,000 donation? OA. $135,000 OB. $63,000 OC. $36,000 OD. $100,980

fter a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school's endowment pool and the returns generated from the donation will upport the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the alary will be made annually. art A) You can make a donation today (t=0) in the amount of $1,800,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the Ollowing is closest to the annual salary payment that can be made as a result of your donation? OA. $72,000 B. $1,800,000 OC. $99,000 OD. $327,273 Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this new requirement, and assuming the first salary distribution will still occur one year from today, what is the starting salary (at t=1) that can be supported with your $1,800,000 donation? OA. $135,000 OB. $63,000 OC. $36,000 OD. $100,980

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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To establish a scholarship fund forever at Toronto Metropolitan University paying $10000 annually if the fund will earn interest at 4% and the first payment will be made • immediately, one needs $ • 6 years from now, one needs $ Round your answers to the nearest integer and do not use, in your answers, e.g., input 21356, not 21,356.
You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?
Jeremiah Wood wants to set up a fund to pay for his daughter's education. In order to pay her expenses, he will need $22,000 in four years, $23,400 in five years, $24,600 in six years, and $26,100 in seven years. If he can put money into a fund that pays 5 percent interest, what lump-sum payment must Jeremiah place in the fund today to meet his college funding goals? Round the answer to the nearest cent. Round PV-factor to three decimal places.
Need help with Case C & D and Chart thanks.
4. Mr. Richman has offered to give the New Life Hospice Center $100,000 today or $300,000 when he dies. If the hospice center earns 14% on its investments, and it expects Mr. Richman to live for 12 years, which alternative should they take? Take the gift now or later? Discuss in narrative and include your calculations and citations with your answer.
A favorite aunt wishes to establish a trust fund for her niece's math education. How much should she set aside now if she wants $45, 000, 7 years from now, and interest is compounded continuously at 5%? O $45,000(1.05)-7 O $45,000e -1.95 $45,000e-0.35 O $45,000e-0.05 O $45,000(1.05)- -0.35
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. O a. $1,362.43 b. $2,601.05 c. $5,764.90 d. $4,069.80 e. $5,485.16
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Urgent, please answer the question below.This is how you answer the problem,(a) Identify the given (b)Identify the unknown or what is being asked in the problem(c)Solution, include the formula used to solve the problem(d)box the final answer
THIS QUESTION HAS TWO PARTS After a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school's endowment pool and the returns generated from the donation will support the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the salary will be made annually. Part A) You can make a donation today (t=0) in the amount of $2,500,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the following is closest to the annual salary payment that can be made as a result of your donation? A. $137,500 B. $454,545 C. $2,500,000 D. $100,000 Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this…
William wants to establish a scholarship fund at his former university. He would like the recipients to receive an annual $5300 award starting next year. He would like to fund 10 years of these awards. Assuming the university can earn 11% on their donated funds, how much of a donation must William make today to fund the scholarships? $31212.92 $36512.92 $88626.65 $53000.00
You give $2.1 million to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift. You are guaranteed an 8% return on your investment. a. What would be the income from your gift? (Enter your answer in dollars, not millions of dollars.) Annual income $ b. How much of your gift would be a tax deduction? (Enter your answer in dollars, not millions of dollars.) Tax deduction $

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