Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You work for a non-profit organisation (NPO) which aims to address the fourth Sustainable Development Goalas set out by the UN, namely to achieve inclusive
You work for a non-profit organisation (NPO) which aims to address the fourth Sustainable Development Goalas set out by the UN, namely to achieve inclusive and quality education for all. One of the ways to achieve this is to establish a scholarship for high school students which will cover their entire study fees for their final year of schooling. You aim to establish five such scholarships to deserving students into perpetuity starting in five years. The cost of the final year of schooling is estimated to be R30 000 per student in five years and the fees are expected to increase by 6% per annum thereafter Answer the questions that follow: Q5.1 If you can invest funds in a savings account which can earn 10.5% per annum, calculate how much money your NPO must have invested at the start of the scholarship (in five years) to ensure that it can successfully fund this scholarship Q5.2 Suppose that your NPO already has R1 500 000 invested into a savings account today, which earns 12% per annum. Using the value calculated above as the required amount at the start of the scholarship programme (in five years), what monthly instalments will be required to be made into the fund to ensure that the NPO reaches its target to have enough funds available in five years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started