As an Employee Benefit, a Company Has Offered a Fund

question 84

Short Answer

As an employee benefit, a company has offered a fund of $750,000 for eligible children of employees to receive a scholarship of $2,500 per year for post-secondary education. If interest earns 4% compounded annually, how many scholarships can be provided per year?

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Definitions:

Monthly Payments

Regular payments made over a period of time towards settling a debted amount, often associated with loans or lease agreements.

Fringe Benefit

Additional compensation provided to employees beyond their base salaries, such as health insurance, retirement plans, and paid time off.

Loan Payment Schedule

A detailed plan indicating the amounts due and payment dates over the life of a loan.

Effective Rate

The actual interest rate an investment earns or a loan accrues due to compounding over a specified period.