« previous next »

Author Question: A generous philanthropist plans to make a one-time endowment to a renowned heart research center ... (Read 62 times)

saliriagwu

  • Hero Member
  • *****
  • Posts: 537
on: Jul 10, 2018
A generous philanthropist plans to make a one-time endowment to a renowned heart research center which would provide the facility with 250,000 per year into perpetuity. The rate of interest is expected to be 8 percent for all future time periods.
 
  How large must the endowment be?
  A) 2,314,814
  B) 2,000,000
  C) 3,125,000
  D) 3,000,000

Question 2

You can deposit your savings at the Darlington National Bank, which offers to pay 12.6 percent interest compounded monthly, or at the Barlett Bank, which will pay interest of 11.5 percent compounded daily. (Assume 365 days in a year.
 
  ) Which bank offers the higher effective annual rate?
  A) Darlington National Bank
  B) Barlett Bank
  C) Both banks offer the same effective rate.
  D) Cannot be determined from the information provided.
  E) Workable only if the banks use the same compounding period.


javimendoza7

  • Sr. Member
  • ****
  • Posts: 293
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Summation of Heart Sounds, Normal S2 Summation of Heart Sounds, Normal S2
Neurohumoral effects of heart failure Neurohumoral effects of heart failure
Center of Mass of a Binary Star System Center of Mass of a Binary Star System
Heart of Mine by Peter Salett Heart of Mine by Peter Salett
Estimated number of new HIV infections per year over time period in Canada Estimated number of new HIV infections per year over time period in Canada
Insomnia severity vs. time Insomnia severity vs. time
Video: Double Vacuum Process (Illustration No Audio)

For a complete list of videos, visit our video library