Donna wants to create a scholarship fund by saving for several years before the fund starts making annual scholarsh payments forever. She plans to save $222,000.00 per year for 6 years. Her first savings contribution is expected in 1: is the expected amount of the scholarship payment that the fund will make in 7 years if the fund is expected to have of 7.86 percent per year, make annual scholarship payments that grow annually by 2.34 percent forever, and make it scholarship payment in 7 years? O $71,691.25 (plus or minus 10 dollars) $89,580.58 (plus or minus 10 dollars) $96,621.62 (plus or minus 10 dollars) $77,326.18 (plus or minus 10 dollars)
Donna wants to create a scholarship fund by saving for several years before the fund starts making annual scholarsh payments forever. She plans to save $222,000.00 per year for 6 years. Her first savings contribution is expected in 1: is the expected amount of the scholarship payment that the fund will make in 7 years if the fund is expected to have of 7.86 percent per year, make annual scholarship payments that grow annually by 2.34 percent forever, and make it scholarship payment in 7 years? O $71,691.25 (plus or minus 10 dollars) $89,580.58 (plus or minus 10 dollars) $96,621.62 (plus or minus 10 dollars) $77,326.18 (plus or minus 10 dollars)
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:Donna wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship
payments forever. She plans to save $222,000.00 per year for 6 years. Her first savings contribution is expected in 1 year. What
is the expected amount of the scholarship payment that the fund will make in 7 years if the fund is expected to have a return
of 7.86 percent per year, make annual scholarship payments that grow annually by 2.34 percent forever, and make its first
scholarship payment in 7 years?
O $71,691.25 (plus or minus 10 dollars)
$89,580.58 (plus or minus 10 dollars)
$96,621.62 (plus or minus 10 dollars)
$77,326.18 (plus or minus 10 dollars)
Onone of the answers are within 10 dollars of the correct answer
0000
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