The Alumni Association of a university desires to award 260000 dollars scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started on July 1, 2018 by a donor in the amount 1,300,000 dollars . The Alumni Association invested this sum at that time at 8% per annum and plans on adding an amount of 12,000 per year to fund from its dues starting July 1, 2019 for as long as awards are made. For how many years starting July 1, 2019 can scholarship be awarded?
The Alumni Association of a university desires to award 260000 dollars scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started on July 1, 2018 by a donor in the amount 1,300,000 dollars . The Alumni Association invested this sum at that time at 8% per annum and plans on adding an amount of 12,000 per year to fund from its dues starting July 1, 2019 for as long as awards are made. For how many years starting July 1, 2019 can scholarship be awarded?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 24E
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The Alumni Association of a university desires to award 260000 dollars scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started on July 1, 2018 by a donor in the amount 1,300,000 dollars . The Alumni Association invested this sum at that time at 8% per annum and plans on adding an amount of 12,000 per year to fund from its dues starting July 1, 2019 for as long as awards are made. For how many years starting July 1, 2019 can scholarship be awarded?
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