1) a. You want to endow a scholarship that will pay $6,000 per year forever, starting one year from now. If the school's endowment discount rate is 7%, 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.)
b. How would your answer change if you endow it now, but it makes the first award to a student 10 years from? today? In this case, the amount you must donate today is $______. ?(Round to the nearest cent.)
2) Owen expects to receive $21,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 8.1%,
how much money can he borrow from the bank on the basis of this information?