There are usually no costs for the first 3 years, but thereafter maintenance is re- quired for restriping, weed control, light replacement, shoulder repairs, etc. For one section of a particular highway, these costs are projected to be $6000 in year 3, $7000 in year 4, and amounts increasing by $1000 per year through the highway's expected 30-year life. Assuming it is replaced with a similar roadway, what is its perpetual equivalent annual worth (in years] through infinity) at an interest rate of8% per year?
THIS IS THE OTHER ONE:
7. A permanent endowment At a university is to award scholarships to engineering students. The awards are to be made beginning 6 years after the $12 million lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $12,000 each, what annual rate of return must the endowment fund earn?