The adult children of a college professor are endowing a scholarship fund in their father’s name. When their father retires in 3 years from now, the children would like the first of $1,000 scholarships to be awarded, and for the annual scholarship to continue in perpetuity. If the funds earn 6% compounded annually, how much do the children need to contribute today to the scholarship fund?
The adult children of a college professor are endowing a scholarship fund in their father’s name. When their father retires in 3 years from now, the children would like the first of $1,000 scholarships to be awarded, and for the annual scholarship to continue in perpetuity. If the funds earn 6% compounded annually, how much do the children need to contribute today to the scholarship fund?
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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The adult children of a college professor are endowing a scholarship fund in their father’s name. When their father retires in 3 years from now, the children would like the first of $1,000 scholarships to be awarded, and for the annual scholarship to continue in perpetuity. If the funds earn 6% compounded annually, how much do the children need to contribute today to the scholarship fund?
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