How large will the annual payment be

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Reference no: EM131825026

1. You have $100,000 to donate to your college. The college's discount rate is 4%. You donate the money today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment be?

The annual scholarship payment will be_____. ? (Round to the nearest cent.)

2. You are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you?

This offer is worth____. ?(Round to the nearest dollar.)

Reference no: EM131825026

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