You would like to give a $1,900.00 scholarship to a deserving student every year. You want the scholarship to be funded by an investment account so it can continue for 30 years. A. How much money must be deposited in an investment account, paying 7% interest compounded annually, in order to give a $1,900.00 scholarship every year for 30 years? (Money deposited to fund a scholarship is called an endowment)

1. You need to have in the investment account to fund the scholarship. Hint

B. You would like to save the money needed for the endowment by making regular monthly deposits, for 15 years, into an account earning 7% interest compounded monthly. How much do you need to deposit every month to reach your goal?

1. You need to deposit in the investment account every month for 15 years to fund the endowment.