Answer:
the college will receive 185,948.7
Explanation:
This problem can be solved applying the principle for calculating the future value, as here is not said we will asumed the 7.5% as componded annually, so:
[tex]FV=PV*(1+i)^{n}[/tex]
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
[tex]FV=5,000*(1+0.075)^{50}[/tex]
[tex]FV=185,948.7[/tex]
