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- What sum of money must be deposited in a trust fund to provide a scholarship of $1550, quarterly for infinite period, if interest is 7.2% compounded quarterly? (Money should be rounded to 2 decimal place) USE ONLY CALCULATOR TO CALCULATE YOUR ANSWERS. PMT VY CAY 1 PV 1550 0.072 4 0.018 86111.11 41. Let the annual interest rate be 6 %. Compute 871 Enter an answer correct to 6 decimal places. ä7 Enter an answer correct to 6 decimal places. 2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 2%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.A company wants to save GH¢100000 over the next 5 years so that they can expand theirplant facility. How much must be deposited at the end of each year if their money earnsinterest at j1 = 6%? Construct a complete sinking-fund schedule.
- 5. A scholarship fund pays out 50,000 annually beginning n years from now. To make this go according to plan, annual deposits of 10,000 are made starting today. The credits interest at an annual effective rate of 3% for the first n years and 6.881052981% thereafter. Find n.vear fromLIow. urn I, Wa. the payments occurred i orever? 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for a 8.5 percent, 12-year annuity, what will the annual cash flow be?3. What amount of money invested today at an interest of 14.22% compounded quarterly can provide the following scholarships: P30,000 at the end of each year for 6 years; P40,000 for the next 6 years, and P50,000 thereafter? Draw the cashflow diagram.
- You would like to establish a trust fund that would provide annual scholarships of $100,000 today and then grow at 2.0% forever (i.e. at time 1 there will be a $102,000 scholarship award). How much would you have to deposit today in one lump sum to achieve this goal if you can earn a guaranteed 7.0 percent rate of return? 2,140,000 2,355,556 1,945,455 2,650,000K Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $55 per month into an account with an APR of 7%. ... Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3.020.2.j SN IM MY ASK Y Clearlake Optical has a $50,000 note that comes due in 3 years. The owners wish to create a sinking fund to pay this note. If the fund earns 1.5% compounded semiannually, how much must each semiannual deposit be? (Round your answer to the nearest cent.) Need Help? Read it Talk to a Tutor
- At a discount rate of 6.00%, find the present value of a perpetual payment of $ 1,000 per year. If the discount rate were lowered to 3.00%, half the initial rate, what would be the value of the perpetuity? Question content area bottom Part 1 a. If the discount rate were 6.00%, the present value of the perpetuity is $ enter your response here . (Round to the nearest cent.)Q3. Mr. X promises Mr. Y to give Rs. 2,00,000/- in cash after 9 years. He has the following two options (a) If Mr. X makes annual payments into a fund after 1 year how much will each have to be if the fund pays 8 %. (b) If Mr. X decides to invest a cumulative amount in the account after 1 year and let it compound annually, then how much will the lump sum? What should Mr. X do? 1You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 3% per 6-month period, how much money will you have to donate ← today to endow the scholarship? You will need to donate $ (Round to the nearest dollar.) CIT