Use the Information for the Question(s) Below

question 13

Multiple Choice

Use the information for the question(s) below.
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently college tuition, books, fees, and other costs average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year.
-After many years teaching finance at Capilano University,Allen wants to establish a scholarship to offer 4 $1,000 awards to students whose performance is excellent in finance courses.If the university can negotiate a 12.75% effective interest rate,at least how much does Allen need to endorse over to the scholarship (closest estimate) ?

• A) $32,000
• B) $31,000
• C) $31,500
• D) $32,500

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Definitions:

Cultural Relativism

The idea that to truly grasp the beliefs and actions of a person, one must interpret them within the context of that person's specific cultural background.

Ethical Standards

The principles of right conduct guiding what people consider to be morally good or bad in their behavior and decision-making.

National Boundaries

Geographical borders that define the territorial limits of a country, affecting its governance, economy, and international relations.

Ethical Behaviour

Ethical behaviour refers to actions guided by principles that consider the wellbeing of society and are morally right and good.