Solved: Find the number of years for which the prize can be awarded, Microeconomics

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Find the number of years for which the prize can be awarded

Problem

A prize fund is set up with a single investment of $5000 to provide an annual prize of $500. The fund is invested to earn interest at a rate of 7% compounded annually. If the first prize is awarded 1 year after the initial investment, find the number of years for which the prize can be awarded before the fund falls below $500.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Find the number of years for which the prize can be awarded

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