After Many Years Teaching Finance at Capilano University,Allen Wants to Establish

question 58

Multiple Choice

After many years teaching finance at Capilano University,Allen wants to establish a scholarship to offer 4 $1,000 awards each year 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:

Silver Handshakes

Severance packages offered to encourage older or long-term employees to voluntarily resign, typically as a cost-saving measure for the company.

Women

Refers to adult human females, often discussed in contexts involving gender equality, rights, and social issues.

Younger Age

Pertains to individuals who fall into a lower age bracket, often considered in contexts like employment where age can impact opportunities or perceptions.

Defined-Benefit Plan

A type of retirement plan where the employer guarantees a specific retirement benefit amount for the employee based on a formula.