A successful investor has decided to set up a scholarship fund for deserving students at her alma mater. Her plan is for the fund to be capable of awarding $25, 000 annually in perpetuity. The first scholarship is to be awarded and paid out exactly four years from today. the funds will be deposited into an account immediately and will grow at a rate of 4%, compounded semi annually, for the foreseeable future. How much money must the investor donate today to fund the scholarship? A. $528,150 B. $549,487 C. $574,253 D. $618,812 Any thoughts on how to work this one? … because I’m screwed.
Seriuosly, post in LI forum.
yeah this is level 1 shit
It’s A though. 1.02^2 = 1.0404
I could flat out pass Level I this year…
Well, I’ll give the answer anyway. 25000/.0404.= Answer D Convert semi rate to annual
I bet you could beat up a girl too, toughguy.
put this into the L1 forum
Here’s how you deal with pests… http://www.analystforum.com/phorums/read.php?11,755802 I’m sure some little LIer just crapped his pants.
Uh, that strangedays guy was scaring me. I felt like one of those guys getting schooled in are you smarter than a 5th grader.
dude was probably a quant. you should have just mixed it up and given him some pension problems to work with.
wow that dude’s a freak. he can take my test for me. I think he’s the 2nd coming of JDV.