The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B. What will be the balance in the fund after the last award was made?
The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B. What will be the balance in the fund after the last award was made?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 8DQ
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Transcribed Image Text:The Philippine Association of Board Examiners
(PABE) desires to award a P1,600 scholarship
annually to deserving students for as long as its
scholarship fund shall last. The fund was started
July 1, 1977 by a donor in the amount of P24,000.
The PABE invested this sum at that time at 4% per
annum and plans on adding P200 each year to the
fund from its dues starting July 1, 1978 for as long
as awards are made.
A. For how many years starting July 1, 1978 can
scholarship be awarded?
B. What will be the balance in the fund after the last
award was made?
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