Q11

Camosun College has just received a donation of $120,000. The donor has stipulated that the funds should be used to fund an ongoing annual bursary of $4,000 with the first payment given out in one year.

What is the minimum amount of interest (j₁) that the funds must earn in order to make the bursary work?

Express your answer as a percent to 2 decimal places but don't include the % sign.

Q12

Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $2,000 to a deserving finance student.

How much must she donate today in order for the first payment to start in five years? Assume an interest rate of j₁=4%.