After getting a job at Goldman Sachs, you plan to endow a scholarship for underrepresented students...

 

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After getting a job at Goldman Sachs, you plan to endow a scholarship for underrepresented students at pitt Business in 25 years. At that time, Pitt Business estimates they will need an amount equal to the present value of a perpetuity paying $45,000 at 4.5% a year to endow this scholarship. You try to meet this goal by making equal end-of-period monthly deposits earning 8.5% compounded monthly. How large of a monthly deposit must you make in order to endow this scholarship? After getting a job at Goldman Sachs, you plan to endow a scholarship for underrepresented students at pitt Business in 25 years. At that time, Pitt Business estimates they will need an amount equal to the present value of a perpetuity paying $45,000 at 4.5% a year to endow this scholarship. You try to meet this goal by making equal end-of-period monthly deposits earning 8.5% compounded monthly. How large of a monthly deposit must you make in order to endow this scholarship?

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