What Sum of Money Must Be Deposited in a Trust

question 44

Essay

What sum of money must be deposited in a trust fund to provide a scholarship of $1520.00, payable at the beginning of each 3 months, if interest is 6.72% compounded quarterly?

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Definitions:

Right Triangle

A triangle that has one angle measuring 90 degrees, with sides called the hypotenuse, opposite, and adjacent.

Hypotenuse

The longest side of a right-angled triangle, directly opposite the right angle, calculated using the Pythagorean theorem.

Inches

A unit of measurement equal to 1/12th of a foot, used primarily in the United States and United Kingdom.

Vector Addition

A method of adding angles.