a donor gives 100,000 to provide annual schlorships for the next 20 years. If the interest...

Question

Question

a donor gives 100,000 to provide annual schlorships for the next 20 years. If the interest is 2.5% how much can they award in schlorships each year?

Answer 1

Answer #1

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

= [100000*.025*(1+.025)^20}/[(1+.025)^20-1]

= 6,414.71

They can award 6,414.71 every year as scholarship.

Answer 2

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