Baffin College has an endowment that pays one lucky student $7,500 a year forever; of course, it is a different student each year. Long-term yields are 10 percent. (Use a Financial calculator to arrive at the answers.)

a. How much is currently required to fund the endowment?

Required fund $ 75000 Numeric ResponseEdit Unavailable. 75000 correct.

b. If the endowment will not commence until five years from today, how much is required? (Round the final answer to the nearest whole dollar.)

Required fund $ 46569 Numeric ResponseEdit Unavailable. 46569 incorrect.