How much does Mike need to add to the fund

Assignment Help Financial Accounting
Reference no: EM132904832

Question - Mike wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4=4.35% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation.

Assume that the fund's earnings rate rate has changed from j4=4.35% to j4=4.1% one year before the first scholarship payment. How much does Mike need to add to the fund at that time (one year before the first scholarship payment) to ensure that scholarship amount will be unchanged (rounded to two decimal places)?

a. 66123.97

b. 64997.23

c. 61968.96

d. 69047.63

Reference no: EM132904832

Questions Cloud

State epidemiologist : If you were state epidemiologist and it was suspected that smoke from the local toy factory was connected to adverse health outcomes among town's residents
Calculate the cost of goods sold and ending inventory : Calculate the cost of goods sold and ending inventory for Feb 2021 using both the Weighted Average cost and First in, first out (FIFO) method
Discuss regulations relating to safeguarding health infor : Explain the mandatory contents and legal obligation of providers to maintain accurate medical records. Discuss regulations relating to safeguarding health info
Syphilis study at tuskegee : How do you think participants in the study would have reacted had they been given full disclosure about the research methods prior to the start of the study?
How much does Mike need to add to the fund : Assume that the fund's earnings rate rate has changed from j4=4.35% to j4=4.1% one year before the first scholarship payment. How much does Mike need
Discuss factors complicating the interpretation : Discuss factors complicating the interpretation, the overall risk of genetic disorder/condition/trait, and identify additional information needed.
Risk factors associated with leading cause of death : Explain the relationships between the risk factors associated with the leading cause of death you selected in Module Four and the outcome
Discuss patterns of the disease focusing on single disorder : Provide an explanation of the genogram by interpreting the family history. Discuss patterns of the disease focusing on a single disorder/condition.
What will the NBV of the equipment be : Financial Statements: What will the NBV of the equipment be on the Dec 31, 2024 statement of financial position

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd