Your graduating class has decided to establish an endowment for a scholarship to be awarded to outstanding
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Question:
Your graduating class has decided to establish an endowment for a scholarship to be awarded to outstanding future students admitted to the school. The university suggests an endowment that generates $90,000 a year forever. The discount rate is 6%. If your class pledges $120,000 a year (starting next year), how long will it take to have enough to establish the endowment? (Hint: You only start awarding the scholarships after you have enough resources for the endowment to generate the amount recommended by the university.)
Related Book For
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley
Posted Date: