What is the value of this gift today at a discount rate

Assignment Help Financial Management

Reference no: EM132055805

A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy students.

The first scholarship will be granted one year from now in the amount of $35,000. Thereafter, one scholarship of the same amount will be granted each year. The scholarship fund will last indefinitely.

What is the value of this gift today at a discount rate of 5% compounded annually?

Reference no: EM132055805

Questions Cloud

Standard for the standardization of base solutions : Oxalic acid dihydrate, H2C2O4.2H2O, is often used as a primary standard for the standardization of base solutions.

What is the expected value and standard deviation : What is the expected value and standard deviation of the rate of return on the client's portfolio?

What is the mass percent of nitrogen in the compound : A 0.107-g sample of a compound was treated as above, producing 80.8 mL of N2 saturated with water vapor at 25 °C and 746.9 torr.

What is the absolute temperature of gas sample : What is the absolute temperature of this gas sample when thepressure is multiplied by five and the volume is reduced to onethird?

What is the value of this gift today at a discount rate : What is the value of this gift today at a discount rate of 5% compounded annually?

Obtaining the benefits of cheap energy : Is it fair for the industrialized nations to expect that all nations, including the less developed ones, restrict their use of fossil fuels

Exact formula of a chemical compound : If IR does not give you the exact formula of a chemical compound, what useful information does it provide?

Different liquids have increased surface tension like water : What if we could make different liquids have increased surface tension like water, or even decreased surface tension like gasoline?

How large should weis dividend payout ratio be next year : According to the residual distribution model (assuming all payments art in the form of dividends), how large should Wei's dividend payout ratio be next year?

User Account

All Pages