How much can the annual payments from the fund

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Venus wants to create a scholarship fund that will make its first scholarship payment in 6 years from today. She plans to save 29,800 dollars per year in the fund for 5 years. Her first savings donation to the fund is expected in 1 year from today.

How much can the annual payments from the fund be expected to grow each year if the fund is expected to earn 10.6 percent per year, make its first scholarship payment in 6 years from today, have that first payment be 18,300 dollars, and have all subsequent payments grow annually at a constant rate forever?

Reference no: EM132049961

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