Exploration 3.

1
1. 84
2. This scholarship will not be available the following year.
3. 43.02439
4. 86.04
5. Not all of the money was spent in the first year, and so interest accumulated on
that money
6. 22.56
7. The number of scholarships will decrease.
8. 4
9. 6; 3
10. $1,000,000
11. Increase. A lower interest rate will decrease the amount of money made in
interest each year.

Exploration 3.2
1. $1,200,000
2. $2,000,000
3. $111,564.63
4. $747,732.62
5. $57,142.86
6. $54,421.77; This is smaller than the first amount because it has a longer time to
accumulate interest.
7. $111,564.63
$60,000 $60,000 $60,000
8. Total Insurance Needed = + (1+0.05)2 + ⋯ + (1+0.05)20
1+0.05
9. $747,732.62
10. $892,648.49
11. If the interest rate is lower than 5% and if the receiver still wants the same
payment each year, he will need to put in a larger initial deposit because less
interest can accumulate on top of the principal balance.
12. $498,488.41
13. The answer is smaller because the payments each year are smaller; not as much
interest needs to be made on top of the deposit.
14. 𝑣 = 0.952381
15. $57,142.86