# Mike wants to donate \$5,000,00

Mike wants to donate \$5,000,000 to establish a fund to provide
an annual scholarship in perpetuity. The fund will earn an interest
rate of 4.54% p.a. compounded half-yearly
(j2=4.54% p.a.) and the first scholarship
will be first awarded 3.5 years after the date of the donation.

(a) What is the amount of the annual scholarship
(rounded to two decimal places)?

a.

258480.29

b.

256843.52

c.

253648.38

d.

126980.53

Mike wants to donate \$5,000,000 to establish a fund to provide
an annual scholarship in perpetuity. The fund will earn an interest
rate of 4.54% p.a. compounded half-yearly
(j2=4.54% p.a.) and the first scholarship
will be first awarded 3.5 years after the date of the donation.

(b) Assume that two years after the donation, Mike needs to
withdraw \$1,000,000 from the fund and use the remaining amount to
provide an annual scholarship in perpetuity. The time of the first
scholarship will be unchanged (3.5 years after the date of the
donation). What is the new annual scholarship
amount (rounded to two decimal places)?

a.

211247.28

b.

207229.24

c.

209885.95

d.

103765.24

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# Mike wants to donate \$5,000,00

Mike wants to donate \$5,000,000 to establish a fund to provide
an annual scholarship in perpetuity. The fund will earn an interest
rate of 4.29% p.a. compounded half-yearly
(j2=4.29% p.a.) and the first scholarship
will be first awarded 3.5 years after the date of the donation.

(a) What is the amount of the annual scholarship
(rounded to two decimal places)?

a.

241071.50

b.

242514.54

c.

119256.72

d.

238250.58

(b) Assume that two years after the donation, Mike needs to
withdraw \$1,000,000 from the fund and use the remaining amount to
provide an annual scholarship in perpetuity. The time of the first
scholarship will be unchanged (3.5 years after the date of the
donation). What is the new annual scholarship
amount (rounded to two decimal places)?

a.

97346.62

b.

197979.31

c.

194440.04

d.

196781.32

### Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized