You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected

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You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost $10,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 12 years and will accumulate it by making equal annual (end-of-year) deposits into an account. The rate of interest is expected to be 13% for all future time periods.

a. How large must the endowment be?

b. How much must you deposit at the end of each of the next 12 years to accumulate the required amount?

Posted Date: May 18, 2024 10:07 AM

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You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected

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