You would like to start a $1,000 per year scholarship fund for first year commerce students at theUniversity of Calgary. The first payment will be in one year from today. You will invest themonies in long-term Government of Canada bonds at 5% per annum. How large does the fund need to be to meet your objective?
A) $25,000
B) $20,000
C) $33,333
D) $100,000

Question

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The Answer of You would like to start a $1,000 per year scholarship fund for first year commerce students at theUniversity of Calgary. The first payment will be in one year from today. You will invest themonies in long-term Government of Canada bonds at 5% per annum. How large does the fund need to be to meet your objective?
A) $25,000
B) $20,000
C) $33,333
D) $100,000

You Would Like to Start a $1,000 Per Year Scholarship