Requuired annual rate of return on the investment is nearest

Assignment Help Business Economics

Reference no: EM131098312

A permanent scholarship fund is started through a donation of $750,000. If scholarships totalling $100,000 are awarded each year beginning five years from now, the requuired annual rate of return on the investment is nearest to:

Reference no: EM131098312

Questions Cloud

Who encodes message in the communication process : The individual who encodes a message in the communication process is also most likely to be which of the following:

Suppose that the demand for olive oil is highly inelastic : Suppose that the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, you would expect a _____________ in the pric..

Several celebrated investors-stock picker frequently mentiod : Several celebrated investors and stock pickers frequently mentioned in the financial press have recorded huge returns on their investments over the past two decades. Does the success of these particular investors invalid the EMH? Explain

Low interest rates impact our balance of trade : The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?

Requuired annual rate of return on the investment is nearest : A permanent scholarship fund is started through a donation of $750,000. If scholarships totalling $100,000 are awarded each year beginning five years from now, the requuired annual rate of return on the investment is nearest to:

Equal semi-annual cash flow in the equivalent series : A series of quarterly cash flows began with the first cash flow on April 1,1990 and ends with the last cash flow on January 1,2000. The first quarterly cash flow is equal to $24,000. Each successive cash flow increases $850. The series of quarterly c..

Compute present value of stream of profits for three year : A market is characterized by a demand curve that can be expressed as P = 400 – 5 Q. Each of the firms currently serving the market has a total cost function of the form C = 50 q. There are no fixed costs. compute the present value of a stream of prof..

An individual is considering the purchase of used automobile : An individual is considering the purchase of a used automobile. The total price is $6200 with $1240 as a down payment and the balance to be paid in 48 equal monthly payments with interest of 12% compounded monthly. The payments are due at the end of ..

Which bond has lowest expected after-tax real interest rate : If an investor has a tax rate on interest income of 25% and the inflation rate is 4%, which bond has the lowest expected after-tax real interest rate?

User Account

All Pages