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You want to endow a scholarship that will pay $15,000 per year forever, starting one year from now. If the school's endowment discount rate is
You want to endow a scholarship that will pay $15,000 per year forever, starting one year from now. If the school's endowment discount rate is 6%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is $. (Round to the nearest cent.) How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In this case, the amount you must donate today is $/ (Round to the nearest cent.) Assume that your parents wanted to have $110,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 12.0% per year on their investments a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $150,000 saved just in case, how much would they have to save each year to reach their new goal? a. How much would they have to save each year to reach their goal? To reach the goal of $110,000, the amount they have to save each year is $. (Round to the nearest cent.) b. If they think you will take five years instead of four to graduate and decide to have $150,000 saved just in case, how much would they have to save each year to reach their new goal? To reach the goal of $150,000, the amount they have to save each year is $. (Round to the nearest cent.)
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