1. your church has decided that one of its missions will be to provide assistance to those members that demonstrate a need for assistance to attend local community colleges. the board decided to set-up a trust fund that will be available in 5 years. one member puts up $10,000 to begin the fund. the church also collects another $5,000 per year for the next 5 years. how much will the fund have beginning in 5 years? assume an interest rate of 8%.

The total amount in fund at the beginning of year = $10000 +$19,963.55 = $29,963.55

Explanation:

Initial amount to begin the fund = $10,000

Now , given ;

Church collects another $5,000 per year for the next 5 years at an interest rate of 8%.

Therefore we'll evaluate the Present value of these $5000 for the next 5 years.

PV =

where ;

i = interest rate

n = time period

∴ Net Present Value =

On evaluating the above equation;

Net Present Value = 5000×(0.926 + 0.857 + 0.794 + 0.735 + 0.681)

Net Present Value = $19,963.55

Now,

The total amount in fund at the beginning of year = $10000 +$19,963.55 = $29,963.55

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.