establish a scholarship how much should be deposited now

[tamra]

The question:
In order to establish a fund that will provide a scholarship of $3,000 a year over four years, with the first award to occur now, how much must be deposited if the fund earns 6%?

What I did:
I multiplied $12,000 (replacement cost in 4 years) by .229 (sinking fund factor for 3 years) and I got 11,019. However, that is not correct. So can you help me with what I did wrong and what I should do to make it right?

Thanks
Tamra

 

[Denis]

... and I got 11,019. However, that is not correct.

Who says that's not correct?

 

[tamra]

my mistake. The answer I got was $2,748 doing it the way I emailed earlier. The correct answer is 11,019 told to me by the teacher, so I definitely got it wrong. But I can't figure out how to get the correct answer - I am required to redo it correctly.

Thanks

Tamra

 

[Denis]

Your answer of $2,748 is pretty well impossible, since $12,000 is involved;
did your teacher not give out the formula?

Anyhow, see what you can do on your own (best way to learn):
http://www.google.ca/search?hl=en&sourc ... +&gs_rfai=

Come back if still stuck.