Question
Asked Dec 12, 2019
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To offer scholarships to children of​ employees, a company invests ​$11,000 at the end of every three months in an annuity that pays 10.5​% compounded quarterly.

  1. How much will the company have in scholarship funds at the end of ten​ years?
  2. find the interest
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Expert Answer

Step 1

Recall the following fact.

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(1+r)" –1 Future value annuity, F = P

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Step 2

(a) Obtain the scholarship funds ...

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P = $11,000 r =10.5% = 0.105 10x12 = 40 3 n=10 years = 40 (1+ 0.105)* – 1 Future value annuity, F =11000 0.105 = $5,579,767

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Advanced Math

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