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?