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Solution Library
Calculation of Effective Interest Rate Over a Scholarship-Multiple Choice Question
Question
After many years teaching finance at Georgetown University, Johnathan wants to establish a scholarship to offer 4 $1,000 awards each year to students whose performance is excellent in finance courses. If the university can negotiate a 12.75% effective interest rate, at least how much does Johnathan need to endorse over to the scholarship (closest estimate)?
A) $32,000
B) $31,000
C) $31,500
D) $32,500
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