You You ha ue 100,000otodonate to your college. you wantto endow aperpetual scholauship that ma kes its 1stpayment in 1 year, Ifthe Colleses discount 4%0 how large will the annual scholarshie payment be? Round tothe nearest dollar
You You ha ue 100,000otodonate to your college. you wantto endow aperpetual scholauship that ma kes its 1stpayment in 1 year, Ifthe Colleses discount 4%0 how large will the annual scholarshie payment be? Round tothe nearest dollar
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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Question
![**Scholarship Endowment Calculation**
You have $100,000 to donate to your college. You want to endow a perpetual scholarship that makes its 1st payment in 1 year. If the college's discount rate is 4%, how large will the annual scholarship payment be?
\[ \text{\_\_\_\_\_\_\_\_\_\_\_\_\_\_} \]
*Round to the nearest dollar.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57d798a6-d572-4fac-a3d5-2ff9f6640ec9%2F9ea5c9e5-f948-4284-b11a-678b342f2387%2Fxdi86kd.jpeg&w=3840&q=75)
Transcribed Image Text:**Scholarship Endowment Calculation**
You have $100,000 to donate to your college. You want to endow a perpetual scholarship that makes its 1st payment in 1 year. If the college's discount rate is 4%, how large will the annual scholarship payment be?
\[ \text{\_\_\_\_\_\_\_\_\_\_\_\_\_\_} \]
*Round to the nearest dollar.*
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