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Nat2105 [25]
3 years ago
5

A generous benefactor to a local ballet plans to make a one-time endowment that would provide the ballet with $150,000 per year

into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be?
Business
1 answer:
faltersainse [42]3 years ago
3 0

Answer:

Endowment Must be $3,000,000 Large

Explanation:

The endowment can be calculated using the following formula:

Value=\frac{Cash\ Flow}{Rate\ of\ Interest}

In our case:

Given data:

Cash Flow =$150,000 per year

Rate if interest= 5%=0.05

Required:

How large must the endowment be?

Solution:

Endowment=\frac{Cash\ Flow}{Rate\ of\ Interest}

Endowment=\frac{150,000}{0.05}\\ Endowment=\$3,000,000

Endowment Must be $3,000,000 Large

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Answer:

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5 0
3 years ago
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slava [35]

Answer:

9.63%

Explanation:

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Rate =($19.14 - 19.00 + .57 + 1.12) / $19.00

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Answer:

PV= $37,204.70

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A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
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