How much would he need to set up the prizes today

Assignment Help Financial Management

Reference no: EM131953182

When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died. If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year. And, suppose the cash award will grow by 4% per year. How much would he need to set up the prizes today?

Reference no: EM131953182

Questions Cloud

Write down everything that you have eaten : For your assignment you need to write down everything that you have eaten (including serving size) for three separate days.

Why is it difficult to define quality : Why is it difficult to define quality?Describe briefly the Six Sigma Process. What is meant by the cost of quality?

How emergence of new powers shaping poverty reduction agenda : Need an essay on the - How is the emergence of new powers like Brazil, India and China shaping the international poverty reduction agenda

Draw and label a scatter diagram depicting the data : Draw and label a scatter diagram depicting the data. What, if anything, do you learn from the scatter diagram?

How much would he need to set up the prizes today : When Alfred Nobel died, he left the majority of his estate to fund five prizes, How much would he need to set up the prizes today?

What annual rate of interest must you earn : Calculating Rates of Return. Assume the total cost of a college education will be dollar 295,000 when your child enters college in 18 years.

One advantage of the shareholder model of governance : One advantage of the shareholder model of governance is. What is the present value interest factor and how can it be used to simplify PV calculations?

Compute the prices and yields to maturity of coupon bonds : Compute the prices and the yields to maturity of these coupon bonds.

What does the state of rb protein tell you about cell cycle : What do bands a andb represent? What does the state of RB protein (graphA) tell you about the cell cycle conditions of the leukemia cells?

User Account

All Pages