raw the cash-flow diagram if neccesary 4) A P3 million donation was given by a rich man to a foundation that cares for elderly people without shelters. This donation was then invested to a fund that earns an interest rate of 12% effective. The amount in the fund will provides an equal-beginning of a monthly medical expenses of P 37, 500 at the start of investment for the elderly as long as the amount is available. a) How long will it lasts? b) What available amount would be in the fund after the last monthly expense? Is show the solution. Thanks

Q: A donor wants to fund a growing perpetuity that will pay $14,164 per year to a local museum,…

A: Yearly payment = $14,164 Growth rate = 5% Interest rate = 9%

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: Annual Payment = p = $10,000Time = t = 20 yearsInterest rate = r = 4%

Q: 3) An alumni association wants to establish an endowment that can provide $1million annually for…

A: Equivalent annual cost  The annual cost of owning, running, and maintaining an asset over the course…

Q: An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much…

A: We can determine the amount in the fund after 20 years using the formula below:

Q: = sinking fund formula, calculate the

A: Payment per month refers to the amount which a borrower should at the end of each month or period to…

Q: You want to create a college fund for a child who is now 4 years old. The fund should grow to…

A: Step 1 Present Value A future sum of money or stream of cash flows' present value, or PV, is their…

Q: Deakin University wants to establish a trust fund that will provide a perpetual annual scholarship…

A: The notion of the present value asserts that an amount of money today is worth more than the same…

Q: MetaYou have accumulated $8,000 toward the down payment on a piece of lake front property in rural…

A: The rate of return is a measure that indicates the performance of the investment for the respective…

Q: Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to…

A: According to the time value of money, a dollar amount in possession is worth more than that must be…

Q: A    rich donor gives a    hospital    $1,040,000    one year from today. Each year after that, the…

A: First donation (F) = $1,040,000 Growth rate (g) = 0.06 Interest rate (r) = 0.11 Period (n) = 10…

Q: JJ & Co has decided to donate money to a cancer research fund every year for the next 15 years. They…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Find the amount of each payment to be made into a sinking fund earning 5% compounded monthly to…

A: A sinking fund is a fund created for paying off debt obligation by setting aside specific amount…

Q: Terry has invested $20 000 into a fund with interest at j12 = 18% p.a. What level payment can be…

A: In perpetuity there are payments forever and there is no gap in payments and payments continue…

Q: None

A: The concept of perpetuity can be used to calculate the amount needed to endow a scholarship that…

Q: 22. If a hospital received $15,000 in payments per year at the end of each year for the next six…

A: The Current value is the present value of a future amount i.e.,   it is the amount to be invested…

Q: Please answer all components .of this question there should be 4 seperate calculation if you do so i…

A: The objective of the question is to determine if the cash flows are an annuity, identify the…

Q: Problem 4 A businessman wishes to have an amount of P2769.84 after 5 years. He deposited P500 each…

A: The time value of money refers to the determination of the future and the present value of lump-sum…

Q: pays 2.5% compounded monthly. Ho after 6 years? buyer of a lot pays Php. 50,000 cash a th for 10…

A: Future value of money includes the money including interest that is compounding.   As per Honour…

Q: er and draw the cash flow diagram A man invests P 20,000 now for college education of his 2 year…

A: Future value of investment includes the amount that was invested earlier and also the amount of…

Q: You have accumulated $8,000 toward the down payment on a piece of lake front propert wish to…

A: Today value=$8000Future value=$12000Period=4 yearsFind out interest rate.

Q: A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment…

A: A sinking fund is a fund that contains money or funds set aside for paying obligations or debt or…