22. You are head of the Schwartz Family Endowment for the Arts. Schwartz Family Endowment for...
1. After inheriting $1,000,000, you decide to make an endowment to DBU that will fund a scholarship of $8,000 every year for the next 30 years. The market interest rate for a deposit account that will disperse such an annuity is 9.5%, compounded annually. What amount must you invest in this account today to fund this annuity for 30 years (the 30th payment will zero out the account)?
9) The Elysian Trust has set up a program that provides free school education for an Trust will provide, as underprivileged children in India and Nepal. The Elysian Trust will provide, as endowment, S1 million each year-end in perpetuity. The interest rate is 8% per year What is the value of this gift today? Suppose, instead, Elysian provides an endowment that pays $2 million every two years in perpetuity, what is the value of this gift today? Suppose, instead,...
8) The British government has consol bonds (perpetuities) outstanding that pay £100 per year forever. Assume that the current discount rate is 4% a) What is the value of the bond today in £? b) If this consol trades in the market today at £2,480, what rate of return will an investor earn from this investment? 9) The Elysian Trust has set up a program that provides free school education for underprivileged children in India and Nepal. The Elysian...
in 8 years you will begin receiving $167 per year in perpetuity from a family trust (first payment is exactly 8 years from today). you have decided to discount these cash flows at a constant interest rate of 6.3%. what is the present value today of these future cash flows?
Please help by providing explanation/step by step processes for solutions. Thank you! A young adult expects to receive a cash gift of $9,402 from his trust fund in 9 years. At an interest rate of 10% compounded annually, the present value of the gift is closest to: _______ You expect to buy a house in 9 years. At that time, you will need a down payment of $45,524. A local bank offers a savings account that pays 5% per year,...
in 10 years yiu will begin receiving $184 per year in perpetuity from a family trust fund (first payment is exactly 10 years from today) you have decided to discount these cash flows at a constant interest rate of 5.9%. what is the present value today of these future cash flows?
Your family trust starts to provide you 5 constant annual payments of 10,000 with first payment due today. After the 5 payments, you will receive 5,000 annually in perpetuity. What’s the present value of all payments you will receive from your family trust with an appropriate discount rate of 10% p.a? a. 72,058.54 b. 72,744.72 c. 75,849.33 d. 65,849.33
next year you will begin receiving $189 per year in perpetuity from a family trust fund (first payment is exactly 1 year from today) you have decided to discount these cash flows at a constant interest rate of 6.9%. what is the present value today of these future cash flows?
1) You receive $5,000 at the end of every year for three years. What is the present value of these receipts if you earn eight percent compounded annually 2)What amount will be accumulated in four years if $10,000 is invested today at six percent interest compounded annually?
next year you will begin receiving $177 per year in perpetuity from a family trust fund (first payment is exactly 1 year from today). you have decided to discount these cash flows at a constant interest rate of 6.6% . what is the present value tofay of these future cash flows?