How much money does the donor need to give today

Reference no: EM133559920

Question 1.) A donor would like to fund a scholarship that will pay the receipient $8500.00 at the end of every year for 5years. If the school can get a 5.50% return on its investment, how much money does the donor need to give today to sufficiently fund the scholarship?

- Do not use dollar signs or commas in your answer. Include two decimals in your answer.

Question 2.) Jack places an amount of $60 in an account at the end of each year for 12 consecutive years beginning one year from today. If the interest rate is 3%, how much will Jack have at the end of the 12th year?

Place your answer in dollars and cents. Do not include a dollar sign or comma in your answer. Work your analysis to at least four decimal places of accuracy.

3.) You've won a lottery that allows one of two prizes:

1) $2400 to be received in 2 year(s),
2) $1200 received at the end of each year for 2 years.

Use an interest rate of 5.50%.

Remember: Do not use commas in your answer!
Find the present value of Prize 1. $
Find the present value of Prize 2. $
Which prize is larger? (enter the number 1 or 2)

Reference no: EM133559920

Questions Cloud

How much should skylar have in her emergency fund : How much should Skylar have in her emergency fund? What kinds of investments should she make?

What is the wacc for the firm : Assume no taxes and other Modigliani-Miller assumptions also hold. What is the WACC for the firm

Describes what you found through your investigations : Describes the purpose of the study and the specific questions you are trying to answer. Describes what you found through your investigations

What will be your monthly? payment : If your interest rate is fixed at 4.66?% APR with monthly compounding and you repay the loans over a 10?-year ?period, what will be your monthly? payment

How much money does the donor need to give today : at the end of every year for 5years. If the school can get a 5.50% return on its investment, how much money does the donor need to give today to sufficiently

Explain how human resources can implement policies : Explain eight employment laws which have a direct impact on employer/employee relationships from a Human Resources perspective. Describe what problems

Provide examples from your clinical experience : Identify examples of active and latent errors. Provide examples from your clinical experience. How can such errors be avoided to support better patient care?

What was the amount of trevors one time investment : if they both had the investment for 7 years and the future value of both investments was the same, what was the amount of trevor's one time investment

Should you hire all of the staff as independent contractors : Should you hire all of the staff as independent contractors or employees or some as employees and other(s) as independent contractors? Explain your decision.

User Account

All Pages