5. (20pts) Mr. Frohardt donated $40,000 toward future scholarships. The scholarships are to be paid according to the following schedule: end of year 1: $1,000, end of year 2: $1,500, end of year 3: $2,000, and so on... with the amount increasing $500 each year until the scholarship reaches $5,000. The annual scholarship will remain at $5,000 until the fund is depleted. If the account balance is less than $5,000 at the end of any year (i.e., after the awarding of the $5,000 for that year), that remaining amount immediately will be awarded as a smaller scholarship, and the account will be closed. The scholarship fund earns interest at an effective annual rate of 8%. Determine how many full $5,000 scholarships will be awarded. Solution:
5. (20pts) Mr. Frohardt donated $40,000 toward future scholarships. The scholarships are to be paid according to the following schedule: end of year 1: $1,000, end of year 2: $1,500, end of year 3: $2,000, and so on... with the amount increasing $500 each year until the scholarship reaches $5,000. The annual scholarship will remain at $5,000 until the fund is depleted. If the account balance is less than $5,000 at the end of any year (i.e., after the awarding of the $5,000 for that year), that remaining amount immediately will be awarded as a smaller scholarship, and the account will be closed. The scholarship fund earns interest at an effective annual rate of 8%. Determine how many full $5,000 scholarships will be awarded. Solution:
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:5. (20pts) Mr. Frohardt donated $40,000 toward future scholarships. The scholarships are to be paid
according to the following schedule:
end of year 1: $1,000,
end of year 2: $1,500,
end of year 3: $2,000,
and so on...
with the amount increasing $500 each year until the scholarship reaches $5,000. The annual scholarship
will remain at $5,000 until the fund is depleted. If the account balance is less than $5,000 at the end
of any year (i.e., after the awarding of the $5,000 for that year), that remaining amount immediately
will be awarded as a smaller scholarship, and the account will be closed. The scholarship fund earns
interest at an effective annual rate of 8%.
Determine how many full $5,000 scholarships will be awarded.
Solution:
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