Question: 1. A perpetuity earning 5.50% compounded semi-annually is started with a $223,000.00 investment. How much money could be regularly withdrawn from the investment every 6

1. A perpetuity earning 5.50% compounded semi-annually is started with a $223,000.00 investment. How much money could be regularly withdrawn from the investment every 6 months?

2. A local university received a $950,000.00 gift to establish an endowment fund for a student scholarship. The endowment fund earns interest at a rate of 4.00% compounded semi-annually. The university will award the scholarship at the end of every quarter, with the first scholarship being awarded seven years from now. Calculate the size of the scholarship that the university can award.

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