Question: 2) Mary has decided to donate some funds to her university. She would like to fund an endowment that will provide a scholarship of $30,000
2) Mary has decided to donate some funds to her university. She would like to fund an endowment that will provide a scholarship of $30,000 each year in perpetuity, and also a special award, "Student of the Decade," each ten years (again, in perpetuity) in the amount of $90,000. How much money does Mary need to donate today, in one lump sum, to fund the endowment? Assume the fund will earn a return of 5% per year. (14 p.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
