document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1133051>Question 1133051</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A club is creating a fund so that scholarships of $5000 can be paid out to the eligible students every year, for the next 20 years,  starting next year. How much does the club need to invest today at 6.5% compounded annually? </SPAN>\n" );
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document.write( "I had sinking fund by mistake<BR>\n" );
document.write( "If use annuity formula,<BR>\n" );
document.write( "P=payout(1-(1+r)^(-t))/r; r=0.065, t=20<BR>\n" );
document.write( "=5000(1-(1.065^(-20))/0.065<BR>\n" );
document.write( "=5000*0.7162/0.065<BR>\n" );
document.write( "but round at end<BR>\n" );
document.write( "=$55092.54 </SPAN>\n" );
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