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uysha [10]
3 years ago
10

You dream of endowing a chair in finance at the local university that will provide a salary of $250,000 per year forever, with t

he first cash flow to be one year from today. If the university promises to invest the money at a rate of 4% per year, how much money must you give the university today to make your dream a reality?
Business
1 answer:
mylen [45]3 years ago
3 0

Answer:

$6,250,000

Explanation:

Data provided in the question

Salary per year = $250,000

Rate of interest = 4% per year

So by considering the above information, the amount given today should be equal to

= Salary per year ÷ Rate of interest

= $250,000 ÷ 4%

= $6,250,000

By dividing the salary with the rate of interest we can get the amount that has to be given today

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Answer:

This proposal will not work.

Explanation:

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A. Education, savings, and human capital, respectively.

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3 years ago
In 1 or 2 sentences, describe the effect of competition on prices of items being sold.
yuradex [85]

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4 years ago
A firm has earnings before interest and taxes of $27,130, net income of $16,220, and taxes of $5,450 for the year. While the fir
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Answer:

The correct answer is e. -$4,940.

Explanation:

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Interest =  Earning before interest and taxes - Net income - Taxes

Interest = 27,130 - 16,220 - 5,450

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6 0
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Answer:

A tire without good traction has less grip on the road.

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Read more on Brainly.com - brainly.com/question/12817926#readmore

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