You have decided to support your Alma Mater with a scholarship that provides $10,000 to one student per year, in perpetu

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answerhappygod
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You have decided to support your Alma Mater with a scholarship that provides $10,000 to one student per year, in perpetu

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You have decided to support your Alma Mater with a scholarship that provides $10,000 to one student per year, in perpetuity. Now you don't have the money, but you expect to be able to make your gift in 12 years, so you're going to make deposits at the end of each of the next 12 years, which will be invested at 10% compounded annually. Suppose your Alma Mater also invests at that rate.
a. Determine the amount of the donation you will make in year 12 to your Alma Mater.
b. Determine the annuities that will allow you to achieve your goal.
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