2. How much money is needed to establish a fund that pays a research scholarship of $10,000 each half year, if the fund can be invested at j2=10%, and if the first scholarship will be provided (a) a half-year from now? (b) immediately? (c) Four years from now?

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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2. How much money is needed to establish a fund that pays a
research scholarship of $10,000 each half year, if the fund can
be invested at j2-10%, and if the first scholarship will be
provided (a) a half-year from now? (b) immediately? (c) Four
years from now?
Transcribed Image Text:2. How much money is needed to establish a fund that pays a research scholarship of $10,000 each half year, if the fund can be invested at j2-10%, and if the first scholarship will be provided (a) a half-year from now? (b) immediately? (c) Four years from now?
3. On the assumption that a farm will net S1500 annually
indefinitely, whatis the fair price(discounted value) for it, If
money is worth (a)j1-8o (b) j12-15%o.
Transcribed Image Text:3. On the assumption that a farm will net S1500 annually indefinitely, whatis the fair price(discounted value) for it, If money is worth (a)j1-8o (b) j12-15%o.
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