Jane and Michael decide to set up an annual music scholarship.
To fund the scholarship, they invest in a perpetuity that pays interest at a rate of 3.68% per annum.
The interest from this perpetuity is used to provide an annual $460 scholarship.
- Determine the minimum amount they must invest in the perpetuity to fund the scholarship. (1 mark)
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- For how many years will they be able to provide the scholarship? (1 mark)
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