You made your fortune in the dot-com boom (and got out in time!) As part of your

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Question:

You made your fortune in the dot-com boom (and got out in time!) As part of your legacy, you would like to endow an annual scholarship at your alma mater. You want it to be memorable, so you would like the scholarship to be $10,000 per year. The first scholarship will be given today. To thank you for your generosity, the school will cover the cost of the first two scholarships. However, you must give them your donation right NOW

a) in one single payment that will fund the scholarship for the rest of time (i.e. forever).

a) The annual interest rate is 3.5% [annually compunded]. How much should your donation be? Show your steps/reasoning using present value terms, etc

b) What happens if annual interest rate is actually only 3.1% (still compounded annually), what is the # of scholarships you can give given same scenario in (a) also taking into factor the two scholarships funded.