You want to endow a scholarship that will pay $11,000 per year forever, starting one year...

 

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You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. If the school's endowment discount rate is 5%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is $ nearest cent.) (Round to the You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. If the school's endowment discount rate is 5%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today? In the first case, the amount you must donate today is $ nearest cent.) (Round to the

Answer rating: 100% (QA)

To calculate the amount you must donate to endow the scholarship we can use the concept of present v... View the full answer