5.) You want to endow a scholarship that will pay $ 5 comma 000 per...
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5.) You want to endow a scholarship that will pay $ 5 comma 000 per year forever, starting one year from now. If the school's endowment discount rate is 9 %, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?
In the first case, the amount you must donate today is $ ____. (Round to the nearest cent.)
6.) What is the present value of $ 1 comma 000 paid at the end of each of the next 65 years if the interest rate is 7 % per year? The present value is $____ (Round to the nearest cent.)
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