A scholarship provider has $525000 which she will invest today to fund a scholarship forever. She expects to earn 4.75% on her money each year. If she wants to begin paying out the scholarship starting today, what will the annual scholarship payment be? $24,938 $22,000 $28,218 $23,807
A scholarship provider has $525000 which she will invest today to fund a scholarship forever. She expects to earn 4.75% on her money each year. If she wants to begin paying out the scholarship starting today, what will the annual scholarship payment be? $24,938 $22,000 $28,218 $23,807
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A scholarship provider has $525000 which she will invest today to fund a scholarship forever. She
expects to earn 4.75% on her money each year. If she wants to begin paying out the scholarship
starting today, what will the annual scholarship payment be?
$24,938
$22,000
$28,218
$23,807
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