Question: David has been awarded a scholarship that will pay 2 500
David has been awarded a scholarship that will pay $2,500 one year from now. However, he really needs the money today and has decided to take out a loan. If the interest rate is 8 percent, how much can he borrow so that the scholarship will just pay off the loan?
Relevant QuestionsWhen Jon graduates in three years, he wants to throw a big party, which will cost $800. To have this amount available, how much does he have to invest today if he can earn a compound return of 5 percent per year?Grace, a retired librarian, would like to donate some money to her alma mater to endow a $5,000 annual scholarship. The first scholarship will be awarded in 5 years. The university will manage the funds and expects to earn 3 ...A bank is currently offering a savings account paying an interest rate of 8 percent compounded quarterly. It would like to offer another account, with the same effective annual rate, but compounded monthly. What is the ...Roger has his eye on a new car that will cost $20,000. He has $15,000 in his savings account, earning interest at a rate of 0.5 percent per month.a. How long (to the nearest month) will it be before he can buy the car?b. How ...A lakefront house in Kingston, Ontario, is for sale with an asking price of $499,000. The real estate market has been quite active, so the house will almost certainly attract several offers, and may sell for more than the ...
Post your question