An aging, wealthy alumnus is writing his final will and testament. He plans to donate a large lump-sum of money for an annuity that will fund a long-term scholarship at the University.

Assume the annuity has a fixed interest rate of 2.8%, compounded continuously, and needs to generate a continuous stream ofdollars per year in scholarships.

a) How much does the alumnus need to donate to support the scholarship for 20 years?

b) How much does the alumnus need to donate to support the scholarship forever?