.. Endowment income is a critical part of the annual budgets at colleges and universitie3_ A study by the National Association of College and University Business Officers reported that the 435 colleges and universities surveyed held a total of $413 billion in endowments. The 10 wealthiest universities are shown below (The Wail Street Journal, January 27, 2009). Amounts are in billion of dollars. University Endowment ($billion) University Endowment ($hillion) Columbia 7.2 Princeton 164 Harvard 36.6 Stanford 17.2 M.I.T. 10.1 Texas 16.1 Michigan 7.6 Texas A&M 6.? Northwestern _ 7.2 Yale 22.9 a. What is the mean endowment for these universities? b. What is the median endowment? c. What is the mode endowment? - d. Compute the rst and third quartiles. e. What is the total endowment at these 10 unit ersities'? These universities represent 2. 3% of the 435 colleges and universities surveyed. What percentage of the total $413 billion 1n endowments is held by these 10 universities? The Wall Street Journal reported that over a recent ve-month period, a downturn in the economy has caused endowments to decline 23%. What is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities? Given this situation, what are some of the steps you would expect university admin- istrators to be considering? Part 1 (0.2 pt) X Feedback See Hint A consumer receives an endowment of $200.00 this period and $800.00 next period. Currently the interest rate is 11.00%. The present value of the endowment is $ X 222 . (Give your answer to two decimals.) Part 2 (0.4 pt) Feedback See Hint Suppose that instead, the endowment is $240.00 this period and $1040.00 next period. Suppose that the interest rate is still 11.00%. Now the present value of the endowment is $ x 1394.40 . (Give your answer to two decimals.) With the new endowments, the consumer is " wealthier Part 3 (0.4 pt) Feedback See Hint Now suppose that the endowment is $150.00 in the first period and $775.00 in the second period. The interest rate is still 11.00%. Now the present value of the endowment is $ x 1010.25 . (Give your answer to two decimals.) With the new endowments, the consumer is poorerDD Question 3 2 pts 3. The purpose of financial statements contained in annual reports is to: () acommunicate information about the financial health of a company to external users. O assist internal managers in making pricing decisions. O both communicate information about the financial health of a company to external users and assist internal managers in making pricing decisions. O neither communicate information about the financial health of a company to external users nor assist internal managers in making pricing decisions
