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1. Problem 1 Anna, an engineer, has made a considerable fortune. She wishes to start a scholarship for engineering students at her alma mater. The
1. Problem 1 Anna, an engineer, has made a considerable fortune. She wishes to start a scholarship for engineering students at her alma mater. The scholarship will provide a student with an annual stipend of $15,000 for each of four years, plus an additional $10,000 during the fourth year to cover job search expenses. Assume that students graduate in four years, and all funds are paid at the beginning of the year (so, the first award will be given at the beginning of Year 1). Assume an interest rate of 3%. Round all answers to the nearest dollar. a) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship. b) Suppose that the payment structure will change slightly: all scholarship payments will take place at the end of the year. The interest rate remains the same. How much money must Anna donate to the university right away, to cover all the necessary payments for the scholarship? Round to the nearest dollar. (Assume her donation is made in year 0 .) c) Suppose, under the conditions listed in part (b), that Anna would like to donate an amount of money that will allow the program to continue forever (in perpetuity). How much would she need to donate in year 0 for this to be possible
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