Question: Can someone explain to me how to do these problems please and thanks 16.You want to endow a scholarship at UIC that will pay $30,000
Can someone explain to me how to do these problems please and thanks
16.You want to endow a scholarship at UIC that will pay $30,000 every year forever, starting from exactly one year from now. Suppose the university obtains a 5% return on its investments. How much do you need to donate now for the endowment? (You will not make any future donations for the scholarship). (2 points) 17. How would your answer to Question 16 change if the scholarship increases by 2.5% each year? (The first scholarship is still $30,000 and made in one year. The second scholarship is $30,0001.025, and the payments grow forever) ( 2 points)
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