8. Future college will provide a scholarship of $7,500 a year forever with a long term annual expected rate of 7 percent.

a) What is the current value of this scholarship?

b) What is the current value of this scholarship if the first payment is $7,500 and then the payments increase by 2% per year, forever ?

c) What is the current value of this scholarship if the first payment is $7,500 and then the payments increase by 2% per year, for 30 years?