5% PER YEAR. THE SCHOLARSHIP FUND WILL BE MANAGED BY A SUCCESSFUL FU...

1.5% per year. The scholarship fund will be managed by a successful fund

manager, Chris Robinson. Chris guarantees that the fund will earn a 6.75%

annual rate of return. How much should you donate to York today in order to

maintain this scholarship?

A) $50,346.20

B) $146,508.84

C) $178,225.23

D) $228,571.43

Answer C

This is a growing annuity.





30

1

1

015

,

000

12

$

= $178,225.23.

.

−

−

×

PV =

















0

1

0675



