+598 How much can be paid in scholarships at the end of each year if $ 150 000 is deposited in a trust fund and interest is 4.5% compounded annually?
I do not know if it is the way it is worded but can not figure out this one. Any help with steps would be greatly appreciated. Thanks
How much can be paid in scholarships at the end of each year if $ 150 000 is deposited in a trust fund and interest is 4.5% compounded annually?
I do not know if it is the way it is worded but can not figure out this one. Any help with steps would be greatly appreciated. Thanks
This is just a deposit of $150,000 which earns interest at 4.5% comp. annually. You simply figure out the interest the Fund earns in one year at 4.5% as follows:
$150,000 X 4.5%(or .045)=$6,750. This is the total amount that can be paid out in scholarships every year. That is all there is to it.
