You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost ​$6,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 6 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 6 years to accumulate the required​ amount?

/in /by

You have decided to endow Faculty of Business, Dokuz Eylul University
with a scholarship. It is expected to cost ​$6,000 per year to
attend the university into perpetuity. You expect to give the
university the endowment in 6 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 6 years to
accumulate the required​ amount?

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