Question

PROBLEMA El Colegio de Ingenieros y Agrimensores de Puerto Rico (CIAPR) con la ayuda de algunas industrias está planificando establecer un fondo para proveer becas anuales de $1,500 a estudiantes económicamente necesitados. La compañía Merck Sharp & Dohme en Arecibo se compromete a aportar a este fondo $5,000 cada tres años (comenzando en el año 3) mientras que Ethicon en San Lorenzo ofrece contribuir con $10,000 inmediatamente y $3,000 cada dos años. Determine cuántos estudiantes se podrán beneficiar de estas becas cada año si se espera ofrecer este beneficio perpetuamente y el CIAPR puede conseguir una tasa de interés del 4% anual. Construya el diagrama de flujo para esta alternativa y muestre su análisis en forma detallada.

PROBLEM The College of Engineers and Surveyors of Puerto Rico (CIAPR) with the help of some industries is planning to establish a fund to provide annual grants of $ 1,500 to economically needy students. The Merck Sharp & Dohme company in Arecibo is committed to providing $ 5,000 every three years (beginning in year 3) to this fund while Ethicon in San Lorenzo offers to contribute $ 10,000 immediately and $ 3,000 every two years. Determine how many students will be able to benefit from these scholarships each year if you expect to offer this benefit perpetually and the CIAPR can achieve an annual interest rate of 4%. Build the flowchart for this alternative and show your analysis in detail.

Answer 1

Solution: the flow of funds and its uses would be as below:

Year	Opening Balance of Fund	Receipt from The Merck Sharp & Dohme Company in Arecibo	Receipt from Ethicon in San Lorenzeo	Total Funds Available	Return @ 4%	Total funds available for grants	Used for given grants	Balance
Year 1	NIL	NIL	$ 10,000	$ 10,000	$ 400	$ 10,400	$ 7500 ($ 1500 to 5 students)	$ 2,900
Year 2	$ 2,900	NIL	NIL	$ 2,900	$ 116	$ 3016	$ 3000 ($ 1500 to 2 students)	$ 16
Year 3	$ 16	$ 3,000	$ 3,000	$ 6,016	$ 241	$ 6,257	$ 4500 ($ 1500 to 3 students)	$ 1757
Year 4	$ 1757	NIL	NIL	$ 1757	$ 70	$ 1827	$ 1500 (one student)	$ 327
Year 5	$ 327	NIL	$ 3,000	$ 3327	$ 133	$ 3460	$ 3000 ($ 1500 to 2 students)	$ 460

In this way it continues…

Assumptions:

• The return of 4% is available to the total funds available for the year
• As they want to be given perpetually so we need to keep at least $ 1500 for the next year and rest can be given as grants