Have all subsequent payments grow annually at constant rate

Assignment Help Financial Management

Reference no: EM131491395

Venus wants to create a scholarship fund that will make its first scholarship payment in 6 years from today. She plans to save 29,800 dollars per year in the fund for 5 years. Her first savings donation to the fund is expected in 1 year from today. How much can the annual payments from the fund be expected to grow each year if the fund is expected to earn 10.6 percent per year, make its first scholarship payment in 6 years from today, have that first payment be 18,300 dollars, and have all subsequent payments grow annually at a constant rate forever? Answer as an annual rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131491395

Questions Cloud

Develop core values for an imaginary corporation : Need help to develop core values for an imaginary corporation that reflects upon core values to reflect the core values that should reflect key attributes

Compare the price-to-book ratio and the forward pie ratio : Valuation of a Project Under Different Accounting Methods (Easy) Here are some details of an investment in a project with a two-year life and a required return.

Differentiate between structuralism and functionalism : Discuss and differentiate between structuralism and functionalism. Now consider the contributions of Wundt, Titchener, and James

What are the price-to-book ratio and the forward p-e ratio : Valuation of a Going Concern Under Different Accounting Methods (Medium) An entrepreneur develops a business plan that requires an initial investment of$2,200.

Have all subsequent payments grow annually at constant rate : have that first payment be 18,300 dollars, and have all subsequent payments grow annually at a constant rate forever?

Explain joyce behavior : Explain Joyce's behavior. State two (2) priority nursing concerns and related nursing interventions for her

Define the concept of lifo and fifo : Inventory Accounting, P/B, and P/E Ratios: Ford Motor Company (Medium) Ford Motor Company uses the last in, first out (LIFO) method for most of its inventories.

Strengths and weaknesses of relationship rules theory : What are the strengths and weaknesses of Relationship Rules Theory? What are the strengths and weaknesses of Relationship Dialectics Theory

Amount of the special contribution : What is X, the amount of the special contribution that Milos will make to his account in 2 years from today?

User Account

All Pages