What amount can be paid at the end of every month, in perpetuity, from an endowment...

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What amount can be paid at the end of every month, in perpetuity, from an endowment...

What amount can be paid at the end of every month, in perpetuity, from an endowment of $75,000 earning 8% compounded monthly?

The Willie P. Stanton Trust Fund is to pay, $5,000 at the end of every year to the student-athlete voted most deserving based on his or her dedication to the ideals of good citizenship. The Trust Fund earns 7.4% compounded semiannually. What is the present value of this perpetuity?

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Answer 1

Answer #1

1. monthly payment = Present value * interest rate

= 75000*(8%/12) = $500

2. Present value = payment / interest rate = 5000/(7.4%/2) = $135135

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Answer 2

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A man donated a certain amount on a trust fund that will provide an end of...

Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4...

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What amount can be paid at the end of every month, in perpetuity, from an endowment...