You are willing to set aside half your salary for the next 10 years and put it in a trust that will earn a rate of 5% annual interest. After those 10 years you will not deposit anything else, but you will keep that money in trust. It is your intention that, after your death, the trust money is used to award each year a scholarship of $150,000 to the best student in your hometown to pay for college. 

If you expect to die 50 years from now, and you want this fund to continue indefinitely, How much should your annual salary be for this to be possible?

Answer rating: 100% (QA)

Explanation Value of fund to facilitate annual scholarship of 150000 can be computed using ... View the full answer