A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job. (a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly. (b) Answer part (a) using a 3% and a 7% interest rate. (a) The necessary deposit is $ at 5.25%. (Do not round until the final answer. Then round to the nearest cent as needed.)
A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job. (a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly. (b) Answer part (a) using a 3% and a 7% interest rate. (a) The necessary deposit is $ at 5.25%. (Do not round until the final answer. Then round to the nearest cent as needed.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job.
(a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly.
(b) Answer part (a) using a 3% and a 7% interest rate.
(a) The necessary deposit is $ [blank] at 5.25%.
(Do not round until the final answer. Then round to the nearest cent as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5403849-9f1b-47b1-a027-5bfd8ac96652%2Ffa3e7678-e930-4754-872d-cd77f1ef1ec7%2Fz9jajjj_processed.png&w=3840&q=75)
Transcribed Image Text:A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job.
(a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly.
(b) Answer part (a) using a 3% and a 7% interest rate.
(a) The necessary deposit is $ [blank] at 5.25%.
(Do not round until the final answer. Then round to the nearest cent as needed.)
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