F. the wall street journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. what is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities?

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britc7953 britc7953

07-01-2018
Business

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F. the wall street journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. what is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities?

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meerkat18 meerkat18 · Answer 1 · 2018-01-21T12:59:05+01:00

Endowment income is a critical part of the annual budget of a university and colleges. Based on the given data, the estimated value of the dollar would be $44.20; this will be the amount of the decline in the total endowments held by these 10 university. With this, school administrators will be expected to consider increased in tuition fee and fund raising efforts and implement cost reductions policy.

Previous endowment x 0.77 = Current endowment

Previous endowment = current endowment / 0.77 = $147.9 / 0.77 = $192.10

Reduction = $ 192.10 - $147.90 = $44.20