A Wealthy Donor Made a $50,000 Contribution to a Local

question 11

Multiple Choice

A wealthy donor made a $50,000 contribution to a local charity. The charity invested this amount for three years at an interest rate of 2.4% compounded annually. At the end of this time, the charity wished to provide monthly benefits in perpetuity to those in need. Determine the amount that the charity can provide on a monthly basis.

• A) $125.12
• B) $114.74
• C) $108.66
• D) $106.21
• E) $103.90

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Definitions:

Suspects

Individuals thought to be involved in or responsible for a criminal activity but not yet proven guilty.

Culprit

The person or thing responsible for a fault or problem.

Knights

Historically, a warrior mounted on horseback or a person granted an honorary title of knighthood by a monarch or other political leader for service to the country or Church.

Capturing Forts

The military action of taking control of fortified enemy positions.