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how much must you donate now if the fund earns interest at a rate of 4% per year? Show your hand calculations and solve this question in excel. Show your cash flows in excel

how much must you donate now if the fund earns interest at a rate of 4% per year? Show your hand calculations and solve this question in excel. Show your cash flows in excel

Essentials Of Investments
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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Can someone please help me to solve this question using excel. Please and thank you!!
3. You plan to start a permanent scholarship fund in the name of your company. You plan to deposit money now with the stipulation that the scholarships be awarded beginning 12 years from now. The interest that is accumulated between now and year 12 is to be added to the principal of the endowment. After that, the interest that is earned each year will be awarded as scholarship money. If you want the amount of the scholarships to be $40,000 per year, how much must you donate now if the fund earns interest at a rate of 4% per year? Show your hand calculations and solve this question in excel. Show your cash flows in excel
Transcribed Image Text:3. You plan to start a permanent scholarship fund in the name of your company. You plan to deposit money now with the stipulation that the scholarships be awarded beginning 12 years from now. The interest that is accumulated between now and year 12 is to be added to the principal of the endowment. After that, the interest that is earned each year will be awarded as scholarship money. If you want the amount of the scholarships to be $40,000 per year, how much must you donate now if the fund earns interest at a rate of 4% per year? Show your hand calculations and solve this question in excel. Show your cash flows in excel
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