8. 5.40 An alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at a return of 8% per year is closest to:

1. $190,820 2. $122,280 3. $127,460 4. $132,040