How large should the endowment of a college be in order

Reference no: EM13327413

How large should the endowment of a college be in order to guarantee the availability of funds for $1,000,000 per year? Assume that the endowment can be invested at an annual rate of 4.5%?

Reference no: EM13327413

Questions Cloud

Consider the problem of constructing crossword puzzles : Consider the problem of constructing crossword puzzles: fitting words into a grid of intersecting horizontal and vertical squares. Assume that a list of words (i.e. a dictionary) is provided and that the task is to fill in the squares using any su..

Calculate the amounts of the adjusting entries : Calculate the amounts of the adjusting entries and enter them in the adjustments column and enter the amounts in the adjusted trail balance column - prepare the Income Statement

What are the percentage changes in value when the yield goes : Given a five-year, 8% coupon bond with a face value of $1,000 and coupon payments made annually, determine its values given it is trading at the following yields: 8%, 6%, and 10%.

Calculate the deprecation rate and then the depreciation : Shockers Corp. acquires an asset for $200,000 which they estimate 3 years as the service life. For any taxable income, Shockers Corp uses a tax rate of 50%.

How large should the endowment of a college be in order : How large should the endowment of a college be in order to guarantee the availability of funds for $1,000,000 per year Assume that the endowment can be invested at an annual rate of 4.5%

Freshmen pursuing a business degree at a university : Among 500 freshmen pursuing a business degree at a university, 347 are enrolled in an economics course, 247 are enrolled in a mathematics course, and 120 are enrolled in both an economics and a mathematics course. What is the probability that a..

What will be the economic profit : A monopolist's demand curve is P = 100-Q and the total cost curve is TC = 16 + Q^2. The associated marginal cost curve is MC = 2Q. What is the profit maximizing quantity and price, and what will be the economic profit?

Determine what are the percentage changes in value : Given a 10-year, 8% coupon bond with a face value of $1,000 and coupon payments made annually, determine its value for the following yields: 8%, 6%, and 10%.

Determine how long will the money last per year : Your great aunt left you $20 000 when she died. You can invest the money to earn 12% per year. If you spend $3540 per year out of this inheritance, how long will the money last

User Account

All Pages