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:

Vitamin A

A fat-soluble vitamin important for vision, the immune system, and skin health.

Digestive Enzymes

Biological molecules that catalyze the breakdown of complex food particles into simpler substances for absorption and assimilation by the body.

Substrate

A surface or material upon or within an organism lives, grows, or obtains its nourishment, or a reactant in a chemical reaction upon which an enzyme acts.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one’s job or role.