You Would Like to Start a $1,000 Per Year Scholarship

Multiple Choice

You would like to start a $1,000 per year scholarship fund for first year commerce students at theUniversity of Calgary. The first payment will be in one year from today. You will invest themonies in long-term Government of Canada bonds at 5% per annum. How large does the fund need to be to meet your objective?

A) $25,000
B) $20,000
C) $33,333
D) $100,000