6. A benefactor proposes to set up an endowment for student scholarship at the Business School. The proposal is to provide scholarship of $15,000 (at the end of) each year. Suppose the interest rate earned by endowments is 4%. (a) How much should the benefactor donate? [Hint: This is a perpetuity problem.] (b) What if the proposal is to provide $15,000 plus a raise of 3% each year? [Hint: This is a growth perpetuity problem.] 7. You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return on this investment is 15%. You should be essentially indifferent to buying or not buying the investment if it were offered at a price of a. $5,000.00 b. $6,000.00 c. $6,666.67 d. $7,500.00 8. Murat plans to buy a Corvette after 5 years. He expects the car will cost $63,000 at that time. How much does Murat need to save at the end of each of the next five years to buy the Corvette if the rate of interest is 10% per year? a. $10,001 b. $10,319 c. $12,600 d. $13,345