a university alumni group wishes to provide an annual scholarship in the amount of 1500 beginning next year. if the scholarship fund will earn an interest rate of 8%/year compounded continuously, find the amount of the endowment the alumni are required to make now.

asked by soffy

12 years ago

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1 answer

1500 = P(e^.08-1)
P = 18010

answered by Steve

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Question

a university alumni group wishes to provide an annual scholarship in the amount of 1500 beginning next year. if the scholarship fund will earn an interest rate of 8%/year compounded continuously, find the amount of the endowment the alumni are required to make now.

1 answer

1500 = P(e^.08-1)
P = 18010

Steve · Answer

1500 = P(e^.08-1) P = 18010