How large must the endowment? be

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You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost ?$3,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 9 years and will accumulate it by making equal annual? (end-of-year) deposits into an account. The rate of interest is expected to be 8?% for all future time periods.

a. How large must the endowment? be?

b. How much must you deposit at the end of each of the next 9 years to accumulate the required? amount?

Your Answer: (Round to two decimal places.)

a. The endowment will be ?$:

Blank 1. Fill in the blank, read surrounding text.

b. The deposit at the end of each of the next 9 years to accumulate the required amount is ?$ :

Blank 2. Fill in the blank, read surrounding text.

Reference no: EM132548281

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