A University Alumni Group Wishes to Provide an Annual Scholarship

question 19

Multiple Choice

A university alumni group wishes to provide an annual scholarship in the amount of $1,100 beginning next year. If the scholarship fund will earn an interest rate of 5% / year compounded continuously, find the amount of the endowment the alumni are required to make now. ​

• A) $22,559
• B) $21,118
• C) $22,000
• D) $21,556

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Definitions:

Perpetrate

To commit or carry out an act, typically one that is illegal or wrongdoing.

Rehabilitation

The process of seeking to improve a person's condition or behavior, often in the context of recovery from addiction or reintroduction into society after imprisonment.

Incapacitation

A strategy intended to prevent crime by detaining or otherwise restricting the mobility of individuals deemed to be a threat to society.

Deterrence

A strategy aimed at discouraging or preventing specific actions or behaviors by invoking fear of consequences or punishment.