# Math

a kind benefactor sets up a prize in an international school. the benefactor donates \$10 000. the school invests the money in an account paying 5% interest. if \$750 was paid out annually, for how long can the full prize be given out?

1. 👍 0
2. 👎 0
3. 👁 147
1. The present value An of the annuity=10,000

An=p*(1-(1+i)^-n)/i

10000=750*(1-1.05^-n)/0.05
500=750*(1-1.05^-n)
2/3=1-1.05^-n
1.05^-n=1/3
1.05^n=3
n=ln3/ln1.05=22.51708531

1. 👍 0
2. 👎 0

## Similar Questions

1. ### Math

A card is randomly drawn from a standard \$52\$-card deck. An ace of hearts wins the grand prize; any other ace or heart wins a small prize. What is the probability of winning a small prize? Express your answer as a common fraction.

asked by Anonymous on August 10, 2015
2. ### Stat

lottery offers one \$900 prize, two \$700 prize, two \$400 prize and five \$200 prize. One thousand tickets are sold at \$5. Find the expectation if a person buys two tickets

asked by Leter on June 29, 2016
3. ### finance

A major lottery advertises that it pays the winner \$10 million. However this prize money is paid at the rate of \$500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of

asked by aaa-17 on May 17, 2020
4. ### math

50 people purchase raffle tickets 3 winning tickets are selected at random if the first prize is \$1,000, second prize is \$500, and third prize is \$100 in how many different ways can the prizes be awarded and is this a permutations

asked by PAUL on May 7, 2016

Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year's Sundance Film Festival. If the school raises \$2,989 and invests it for 1 year at 3% interest

asked by Jazmin on September 1, 2014
2. ### Math (Confused)

How many international direct-dialing numbers are possible if each number consists of a four-digit area code (the first digit of which must be nonzero) and a five-digit telephone numbers (the first digit must be nonzero)? a.

asked by Kal Jay on October 28, 2016
3. ### math

A prize of \$100, \$200, \$500, or \$1000 will be randomly awarded to a game show contestant, with the probabilities of winning each prize shown in the table below. What is the expected value of the prize that will be awarded?

asked by katie on October 21, 2015
4. ### statistics

A lottery offers one \$800 prize, one \$400 prize, and ten \$80 prizes. One thousand tickets are sold at \$3 each. Find the expectation if a person buts two tickets. Assume that each ticket can win more than one prize.

asked by Kim on October 26, 2012
1. ### cards and prob

A card is randomly drawn from a standard deck. An ace of hearts wins the grand prize; any other ace or heart wins a small prize. What is the probability of winning a small prize? Express your answer as a common fraction.

asked by homeworkgenius on November 15, 2012
2. ### Math

A charity raffle offers a first prize of \$1,000,000, a second place prize of \$100,000 and a third place prize of \$10,000. A total of 500 000 tickets will be sold. What price should be charged for a ticket in order for the charity

asked by Zachary on April 24, 2018
3. ### Math

HELP A Certain state's lottery LOTTO, is set up so that each player pays \$1 per ticket and chooses six different numbers from 1 to 49. if the six numbers chosen match the six numbers drawn each Saturday evening, the player wins

asked by Grace on April 30, 2014
4. ### Algebra II

A furniture company displays bedroom sets which require 21 square meters of space and living room sets which require 42 square meters of space. The company which has 546 square meters of available space,wants to display at least 6

asked by Jon on December 18, 2007