You Would Like to Establish a Fund That Will Be

question 42

Multiple Choice

You would like to establish a fund that will be used to offer a scholarship each year to a worthy student at
Your alma mater. You would like the total annual award to be $5,000, with the first award to
Be presented today. Your alma mater is able to invest the funds at a constant, annual, tax-free
Rate of 8%. How much must you donate today to fund this award? Round your answer to the
Nearest dollar.

• A)$46,296
• B)$67,500
• C)$62,500
• D)$51,296

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Definitions:

Manufacturer

An entity or business that produces goods, usually on a large scale, involving machinery, tools, and labor.

Retailer

An entity that sells goods or merchandise directly to consumers through various channels, including physical stores and online platforms.

Overstock Quantity

An excessive amount of inventory that exceeds the demand, often leading to increased storage costs and potential waste.

Profits Increase

An upward movement in the net financial gains of a business, often resulting from increased revenue, reduced costs, or both.