Question
An alumnus donated $40,000 to a university in 1990.The money was invested so as to provide for a $6,000 scholarship at the end of the
An alumnus donated $40,000 to a university in 1990.The money was invested so as to provide for a $6,000 scholarship at the end of the year, forever.
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b) The interest rate changes to 10%. If the university wants to continue to award the scholarship indefinitely, what will be the amount of each scholarship?
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c) How many years can a $6,000 scholarship be awarded if the rate stays?
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Empirical Finance
Authors: Sardar M. N. Islam, Sethapong Watanapalachaikul
1st Edition
3790815519, 978-3790815511
