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An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently.
a. How much would the account earn in one year of simple interest at a rate of 5.33%?
b. How much would the account earn in one year at 5.33% if the interest was compounded daily? Round to the nearest cent.
c. How much more interest is earned by compounded daily as com- pared to simple interest?
d. If the money is used to pay full scholarships, and the price of tuition is $61,000 per year to attend, how many more students can receive full four-year scholarships if the interest was com- pounded daily rather than using simple interest? |
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