How much money must be deposited into an account paying interest at 5% compounded annually in order to fund a yearly scholarship of $2,000 with the first ayment in one year and continuing forever?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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How much money must be deposited into an account paying interest at 5%
compounded annually in order to fund a yearly scholarship of $2,000 with the first
payment in one year and continuing forever?
Your Answer:
Answer
Transcribed Image Text:Listen How much money must be deposited into an account paying interest at 5% compounded annually in order to fund a yearly scholarship of $2,000 with the first payment in one year and continuing forever? Your Answer: Answer
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