A 5-year plan to raise extra funds for public schools involves an “enrichment tax” that will raise $56 for every student the first year, increasing by $1 per student per year thereafter. There are 50,000 students in the district in year one, 51,000 in year 2, with increases of 1000 students per year thereafter. Calculate the future worth in year 5 of the enrichment plan over a 5-year planning period at an interest rate of 8% per year. Solve this problem using (a) tabulated factors, and (b) a spreadsheet.
A 5-year plan to raise extra funds for public schools involves an “enrichment tax” that will raise $56 for every student the first year, increasing by $1 per student per year thereafter. There are 50,000 students in the district in year one, 51,000 in year 2, with increases of 1000 students per year thereafter. Calculate the future worth in year 5 of the enrichment plan over a 5-year planning period at an interest rate of 8% per year. Solve this problem using (a) tabulated factors, and (b) a spreadsheet.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 5-year plan to raise extra funds for public schools
involves an “enrichment tax” that will raise $56 for every student the first year, increasing by $1 per
student per year thereafter. There are 50,000 students
in the district in year one, 51,000 in year 2,
with increases of 1000 students per year thereafter.
Calculate the future worth in year 5 of the enrichment
plan over a 5-year planning period at an interest
rate of 8% per year. Solve this problem using
(a) tabulated factors, and (b) a spreadsheet.
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