In 1995, Oseola McCarty donated $150,000 to the University of Southe.pdf

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umamaheshwari991

In 1995, Oseola McCarty donated $150,000 to the University of Southern Mississippi to establish a scholarship fund (New York Times, November 12, 1996, pp. A1, A22). What is unusual about this donation is that the entire amount came from what she was able to save each month from her work as a washerwoman, a job she began in 1916 at the age of 8, when she dropped out of school. How much would Ms. McCarty have had to put into her savings account at the end of every 3 months to accumulate $150,000 over 79 years? Assume that she received an interest rate of 5.25% compounded quarterly. Solution $32.49 formula for payment PMT=FV/(((1+i)^N-1)/i) FV = future value = 150,000 i = interest rate = 0.0525/4 = 0.013125 (quarterly) N = number of periods = 79 x 4 = 316 (3 month periods) PMT = 150,000/(((1+0.013125)^316 - 1)/0.013125) = $32.49.

In 1995, Oseola McCarty donated $150,000 to the University of Southern Mississippi to
establish a scholarship
fund (New York Times, November 12, 1996, pp. A1, A22). What is unusual about this donation
is that the entire
amount came from what she was able to save each month from her work as a washerwoman, a
job she began in
1916 at the age of 8, when she dropped out of school. How much would Ms. McCarty have had
to put into her
savings account at the end of every 3 months to accumulate $150,000 over 79 years? Assume
that she received an
interest rate of 5.25% compounded quarterly.
Solution
$32.49 formula for payment PMT=FV/(((1+i)^N-1)/i) FV = future value = 150,000
i = interest rate = 0.0525/4 = 0.013125 (quarterly) N = number of periods = 79 x 4 = 316 (3
month periods) PMT = 150,000/(((1+0.013125)^316 - 1)/0.013125) = $32.49

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24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...

24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...

In 1995, Oseola McCarty donated $150,000 to the University of Southe.pdf

1. In 1995, Oseola McCarty donated $150,000 to the University of Southern Mississippi to establish a scholarship fund (New York Times, November 12, 1996, pp. A1, A22). What is unusual about this donation is that the entire amount came from what she was able to save each month from her work as a washerwoman, a job she began in 1916 at the age of 8, when she dropped out of school. How much would Ms. McCarty have had to put into her savings account at the end of every 3 months to accumulate $150,000 over 79 years? Assume that she received an interest rate of 5.25% compounded quarterly. Solution $32.49 formula for payment PMT=FV/(((1+i)^N-1)/i) FV = future value = 150,000 i = interest rate = 0.0525/4 = 0.013125 (quarterly) N = number of periods = 79 x 4 = 316 (3 month periods) PMT = 150,000/(((1+0.013125)^316 - 1)/0.013125) = $32.49