Calculate the size of the endowment that will be required

Reference no: EM13202513

The firm wants to provide a semiannual award of $4500. The foundation will deposi the company's endowment in a fund that pays 3.75% compounded semiannually. The first aware will be made in 14 months.

Calculate the size of the endowment that will be required to support the scholarship.

end up with a value at t=14 months of $240000. So is the present value just 240000/(1+i/12)^14/6?

Reference no: EM13202513

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