An endowment fund of $20,000 is to pay out $R every year forever, with the first payment

Fantastic news! We've Found the answer you've been seeking!

Question:

An endowment fund of $20,000 is to pay out $R every year forever, with the first payment made exactly 2 years from now. If j1 = 7%, what is R?

Related Book For answer-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

See More Books

Posted Date: Mar 20, 2024 02:30 AM

See More Questions

How do chromatin organization and histone modifications influence nuclear processes such as transcription and DNA replication?
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
1. What is the most you would be willing to pay for a investment that will pay you $59.00 in one year, $306.00 in two years, and $475.00 in three years, if your required rate of return for this type...
Assume that Marcia has created a database with the tables described at the end of Chapter 7: CUSTOMER (Customer, First Name, Last Name, Phone, Email) INVOICE (Invoice Number, CustomerID, Date In,...
Suppose there is a computer game, Land-of-Candy (LoC), where a player moves through a three-dimensional world defined by the cells in an n n n array, C. Each cell, C[i, j, k], specifies the number...
What is the purpose of timelines in an investigation?
Danielle Manning, D.D.S., opened a dental practice on January 1, 2012. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental...
Tokens are generated at a Poisson rate of 5 per second. Data packets arrive at a network entry point at a Poisson rate of 2 per second. Each packet waits to obtain a token (permit) before entering...
By developing said career portfolios, future job applicationsmay result in more successful interviews.The portfolios show off the accomplishments andbeliefs or philosophies of that person.Whether...
Evaluate the integral cot(y) csc(y)dy
Calculate Gross Pay for a Piecework Employee Calculate gross pay for each employee. All are paid overtime wage rates that are 1 . 5 times their respective regular wage rates. NOTE: For simplicity,...
explain how the output for this code is 10? public class F { public static void main(String[] args) { k = 0; for (int i = 0; i < 10; i++) { for (int j = 0; j < 5; j++) { if (j % 2 == 0) { continue;...
In setting standards and if there is a labor union contract how does a company increase the expectations of its operational units? Any thoughts?
What resource is essential for up-to-date investment information and investment research?
A radiation shield that has the same emissivity 3 on both sides is placed between two large parallel plates, which are maintained at uniform temperatures of T1 = 650 K and T2 = 400 K and have...
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
Assume that you want to retire 30 years from now with an amount of money that will have the same value (same purchasing power) as $1.5 million today. If you estimate the inflation rate will be 4% per...
The ENR materials cost index (MCI) had a value of 2708.51 in August 2010. In the same month, the cost for cement was $96.55 per ton. If cement increased in price exactly in accordance with the MCI,...
The mechanical components division manager asks you to recommend a make/buy decision on a major automotive subassembly that is currently purchased externally for a total of $3.9 million this year....
What are the features of a legal risk management plan?
What are residual powers? Concurrent powers?
Why have business enterprises adopted codes of conduct?

An endowment fund of $20,000 is to pay out $R every year forever, with the first payment

Question:

Expert Answer:

Answer how to find the annual payout R from the endowment fund 1 Consider the Perpetuity Discount Fa... View the full answer

Engineering economy

Students also viewed these finance questions