a. For how many years starting July 1, 1988 can scholarship be awarded? b. What will be the balance in the fund after the last award is made? c. Draw the cash flow diagram.
a. For how many years starting July 1, 1988 can scholarship be awarded? b. What will be the balance in the fund after the last award is made? c. Draw the cash flow diagram.
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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The officers and board of directors of the Institute of Integrated Electrical Engineers desire to award a Php 3,600 scholarship annually to deserving electrical engineering students for as long as its scholarship fund shall last. The fund was started on July 1, 1987 by a donor in the amount of Php 18,000. The IIEE invested this amount at that time at 8% per annum and plans on adding Php 600 each year to the fund from its dues starting July 1, 1988 for as long as awards are made.
a. For how many years starting July 1, 1988 can scholarship be awarded?
b. What will be the balance in the fund after the last award is made?
c. Draw the cash flow diagram.
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