Indeed, between 1995 and 1999, even with widespread discounting and merit aid, median SAT Verbal test scores decreased at 45 percent of private institutions and 44 percent of public institutions.
However, Allan says, if an institution with a 4 percent payout rate raises, say, $25 for financial aid and puts it in the endowment fund, that will increase gifts and endowments by one dollar, which in turn decreases the simple tuition discounting by one dollar forever.
This means discounting for interest, for mortality and, when applicable, for vesting.
In addition to selecting the annuity factor (the present value of $1 per year payable monthly for the life of the participant age X), the long formula specifically involves discounting for mortality and for interest.
Different forms of the discounting
model include refinements based on levels of understanding of the market mechanism.
While tuition discounting
works for some institutions, it does not always produce the desired effects.
2036(a) as the IRS's weapon of choice--perhaps its only weapon--in its quest to vanquish FLP discounting
(although Strangi, in particular, raises significant questions as to the proper application of Sec.