You Would Like to Establish a Fund That Will Be

question 55

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 next year. 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)$62,500
• B)$51,296
• C)$67,500
• D)$46,296

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Definitions:

Important Request

A significant or critical appeal or requirement that necessitates prompt attention or action.

Inconvenience

A minor trouble or difficulty that causes discomfort or annoyance but is not a serious problem.

Audience Compliance

The extent to which an audience acts in accordance with the expectations or requests of a speaker or message.

Central Request

The primary or most important appeal or demand made within a communication.