You have had plenty of success in your career so you decide to make a donation to Nichols that will result in an annual scholarship of $1,000. This scholarship will continue forever. If the discount rate is 4.8% compounded annually, what amount will you have to donate?
Q: 5%, what amount must you donate to endow the scholarship?
A: Present Value of Perpetuity: It refers to the present worth of annual cash flows having an infinite…
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A: We are given the following data -Annual payment (C) = $8000Discount rate (r) = 4% or 0.04(i) Amount…
Q: You want to endow a scholarship that will pay $10,000 per year forever, starting one year from now.…
A: Given information: Annual cash flow is $10,000 per month Discount rate is 7% Number of years is 10
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A: We need to donate the amount equal to the present value of future scholarship payments, since the…
Q: You want to endow a scholarship now that will pay $12,000 per year forever, starting the first award…
A: An annuity is a series of periodic payments provided in exchange for a lump sum payment. It is…
Q: You have $500,000 to donate to your college. The college's discount rate is 7%. You donate the money…
A: PV= $500,000 Discount rate= 7% Time period= 10 years Future value (FV)=?
Q: You want to endow a scholarship now that will pay $10,000 per year forever, starting the first award…
A: The current worth of the perpetuity can be found by using the following formula:
Q: Your grandfather wants to establish a scholarship in his father’s name at a local university and has…
A: Perpetuity term refers to the cash flow for an indefinite period or forever. The present value of…
Q: You want to endow a scholarship that will pay $7,000 per year forever, starting one year from now.…
A: Annual payment (P) = $7000 Discount rate (r) = 5%
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A: Framework:If P is the perpetuity and r is the discount rate, then PV of a perpetuity = P / rAmount…
Q: You want to endow a scholarship that will pay $6,000 per year forever, starting one year from now.…
A: Annual payment (C) = $6000 Discount rate (r) = 0.07 or 7% in first case Amount need to donate today…
Q: You would like to establish a fund that will be used to offer a scholarship each year to a worthy…
A: Present value refers to the discounted value of the future cash flow. These future cash flows are…
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A: In the given question we require to calculate the amount of donation to receive $11000 per year…
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A: An annuity is a financial product or contract that provides a series of regular payments or income…
Q: ou want to endow a scholarship now that will pay $7,000 per year forever, starting the first award…
A: Annual payment = $7,000Discount rate = 6%
Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…
A: in this we have to find out effective annual interest rate and from that we will get annual…
Q: You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If…
A: A series of payments made at an equal interval of time for an infinite period is called perpetuity.…
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A: The company invests money to get a return. Before investing money company should know what amount of…
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A: Present value states that today's sum of capital is valued more than same sum in the future.
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A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2
Q: You have $400,000 to donate to your college. The college's discount rate is 6%. You donate the money…
A: The future value of any cash flow is the compounded value of all the current time zero’s deposit and…
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A: The given problem deals with the concept of perpetuity. A perpetuity is a series of uniform cash…
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A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Assume you are working with the foundation to fund a scholarship in your name. Currently, the…
A: Since payment is due for indefinite period, we need to use PV of perpetuity formula to calculate…
Q: You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now.…
A: In this case scholarship will pay $11000 per year forever which is also known as annuity. Discount…
Q: on. How much should be deposited?
A: Present Value of Annuity: It represents the present worth of the future value of the annuity and is…
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A: We need to find present value of future donation by using this equation. Present value =FV(1+r)n…
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A: The idea of present value asserts that a sum of money is worth more now than it will be in the…
Q: You wish to establish a permanent scholarship at Bond University providing a worthy student with…
A: In this we have to calculate the present value of perpetuity.
Q: A wealthy graduate of a local university wants to establish a scholarship to cover the full cost of…
A:
Q: You've decided to leave a scholarship to Calu's business program in the amount of $3,000 annually.…
A:
Q: wealthy graduate of a local university wants to establish a scholarship to cover the full cost of…
A: Annual cost = $32,000 Required return, r = 10% The wants to establish a scholarship to cover the…
Q: Don Solomon wants to set up a scholarship program with his alma mater. If P941498 is needed per year…
A: Present value of annual cash flow to be in perpetuity If a cash flow annually occur in perpetuity,…
You have had plenty of success in your career so you decide to make a donation to Nichols that will result in an annual scholarship of $1,000. This scholarship will continue forever. If the discount rate is 4.8% compounded annually, what amount will you have to donate?
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- You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. If the school’s endowment discount rate is 6%, what amount must you donate to endow the scholarship?You want to endow a scholarship that will pay $7,000 per year forever, starting one year from now. If the school's endowment discount rate is 5%, what amount must you donate to endow the scholarship? The amount you must donate is $ (Round to the nearest cent.)You want to endow a scholarship now that will pay $7,000 per year forever, starting the first award 10 years from now. If the school's endowment discount rate is 6%, what amount must you donate today to endow the scholarship? The amount you must donate today to endow the scholarship is $ (Round to the nearest cent.)
- You want to endow a scholarship now that will pay $10,000 per year forever, starting the first award 10 years from now. If the school's endowment discount rate is 7 %, what amount must you donate today to endow the scholarship?Assume you are working with the foundation to fund a scholarship in your name. Currently, the foundation can earn a 5 percent return on any donations. A. How much money would you need to donate to fund a scholarship that pays $25,000 every year forever, starting one year from now? B. How much money would you need to donate if the foundation could increase their return to 7 percent on any donations?You want to endow a scholarship that will pay $11,000-per year forever, starting one year from now. If the school's endowment discount rate is 9%, what amount must you donate to endow the scholarship? The amount you must donate is $_______. (Round to the nearest cent.)
- You want to endow a scholarship that will pay $10,000 per year forever, starting one year from now. If the school's endowment discount rate is 7%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is $ . (Round to the nearest cent.) How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In this case, the amount you must donate today is $. (Round to the nearest cent.)You want to endow a scholarship that will pay $6,000 per year forever, starting one year from now. If the school's endowment discount rate is 7%, what amount must you donate to endow the scholarship How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is $. (Round to the nearest cent.)A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the end of each year. The first award will be in three years. How much money must she set aside today in order to fund the bursary? Assume that the money will earn a nominal interest rate of 4% compounded annually.
- You would like to establish a fund that will be used to offer a scholarship each year to a worthy student at your alma mater. You would like the total annual award to be $5,000, with the first award to be presented today. Your alma mater is able to invest the funds at a constant, annual, tax - free rate of 8%. How much must you donate today to fund this award? Round your answer to the nearest dollar. You would like to establish a fund that will be used to offer a scholarship each year to a worthy student at your alma mater. You would like the total annual award to be $5,000, with the first award to be presented today. Your alma mater is able to invest the funds at a constant, annual, tax - free rate of 8%. How much must you donate today to fund this award? Round your answer to the nearest dollar. $67, 500 $51,296 $46,296 $62, 500You 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?You've decided to leave a scholarship to Calu's business program in the amount of $3,000 annually. If you can earn 6% on your money annually and inflation is 2%, how much do you need to set aside to ensure the program never runs out of money?